0001822523-24-000037 | 10-Q | XBRL Viewer

Print Document

SHAREHOLDERS' EQUITY - Assumption Used in The Option Pricing Model of Options Granted (Details) - 2020 Plan - Stock options	6 Months Ended
	Jun. 30, 2024
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%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

LOANS HELD FOR INVESTMENT AT CARRYING VALUE (Tables)

6 Months Ended

Jun. 30, 2024

LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]

Schedule of Loans Held at Carrying Value

The following tables summarize the Company’s loans held at carrying value as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
	Outstanding Principal(1)		Original Issue Discount		Carrying Value(1)		Weighted Average Remaining Life (Years)(2)

Senior term loans(3)	$	262,048,014	$	(9,851,079)	$	252,196,935	2.1
Subordinate debt	21,630,051		(246,652)		21,383,399		2.9
Total loans held at carrying value	$	283,678,065	$	(10,097,731)	$	273,580,334	2.1


	As of December 31, 2023
	Outstanding Principal(1)		Original Issue Discount		Carrying Value(1)		Weighted Average Remaining Life (Years)(2)

Senior term loans	$	314,376,929	$	(13,111,531)	$	301,265,398	2.2
Total loans held at carrying value	$	314,376,929	$	(13,111,531)	$	301,265,398	2.2

(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 each respective group of loans as of June 30, 2024 and December 31, 2023.

(3)Senior term loans include senior loans that also have a contiguous subordinate loan because as a whole, the expected credit quality of the subordinate loan is more similar to that of a senior loan.

Schedule of Changes in Loans Held at Carrying Value

The following table presents changes in loans held at carrying value as of and for the six months ended June 30, 2024:


	Principal		Original Issue Discount		Carrying Value

Total loans held at carrying value at December 31, 2023	$	314,376,929	$	(13,111,531)	$	301,265,398
New fundings	107,183,159		(2,423,357)		104,759,802
Accretion of original issue discount	—		5,185,495		5,185,495
Loan repayments	(46,879,654)		—		(46,879,654)
Sale of loans	(90,000,000)		251,662		(89,748,338)
PIK interest	1,217,065		—		1,217,065
Loan amortization payments	(2,219,434)		—		(2,219,434)
Total loans held at carrying value at June 30, 2024	$	283,678,065	$	(10,097,731)	$	273,580,334

Schedule of 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 June 30, 2024 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)


Sub. of Private Co. G	NJ, PA	C, D	$	79,215,888	$	(1,444,847)	$	77,771,041	12.5	%	(5)	5/1/2026	I/O
Private Co. K	MA	C, D	12,195,762		(682,619)		11,513,143		19.3	%	(6)	5/3/2027	P/I
Private Co. J	MO	C, D	20,543,967		(229,595)		20,314,372		19.3	%	(7)	9/1/2025	P/I

Private Co. L	OH	C, D	37,114,073		(866,681)		36,247,392		13.7	%	(8)	5/1/2026	P/I
Sub. of Public Co. M	IL, MA, MD, MI, NJ, OH, PA	C, D	12,822,000		(1,252,966)		11,569,034		9.5	%	(9)	8/27/2025	I/O
Private Co. M	AZ	D	31,399,498		(3,325,329)		28,074,169		9.0	%	(10)	7/31/2026	P/I
Private Co. N - Real Estate	FL	C, D	17,491,921		(656,499)		16,835,422		13.3	%	(11)	4/1/2028	P/I
Private Co. N - Non-Real Estate	FL	C, D	17,200,000		(645,000)		16,555,000		13.3	%	(12)	4/1/2028	P/I
Private Co. O	AZ, MD, MO, NJ, NV, NY, OH, OR, Canada	C	2,728,647		(293,750)		2,434,897		13.8	%	(13)	6/1/2028	P/I
Private Co. P	MI	C, D	15,126,433		(453,793)		14,672,640		13.0	%	(14)	7/1/2027	P/I
CRE Private Co. A	TX	Mixed-use	16,209,825		—		16,209,825		20.0	%	(15)	11/30/2024	I/O
CRE Private Co. B	FL	Residential	21,630,051		(246,652)		21,383,399		13.0	%	(16)	5/12/2027	I/O
Total loans held at carrying value			$	283,678,065	$	(10,097,731)	$	273,580,334

(1)For cannabis operators, 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 12.5%. Effective March 2024, pursuant to the forbearance agreement with Subsidiary of Private Company G, Subsidiary of Private Company G transitioned from a floating interest rate tied to U.S. prime rate to a fixed interest rate. Effective December 1, 2023, the Company placed the borrower on nonaccrual status.

(6)Base interest rate of 12.0% plus SOFR (SOFR floor of 1.0%) and PIK interest rate of 2.0%. As amended by the forbearance agreement entered into in March 2024, between 20.0% and 80.0% of the monthly cash interest is paid in kind from December 1, 2023 to June 1, 2024. Effective December 1, 2023, the Company placed the borrower on nonaccrual status.

(7)Base interest rate of 12.0% plus SOFR (SOFR floor of 1.0%) and PIK interest rate of 2.0%.

(8)Base interest rate of 8.4% plus SOFR (SOFR floor of 5.0%).

(9)Base interest rate of 9.5%.

(10)Base interest rate of 9.0%. Quarterly cash interest is paid in kind from closing to February 1, 2024 and then payable in cash thereafter.

(11)Base interest rate of 8.0% plus SOFR (SOFR floor of 4.5%).

(12)Base interest rate of 8.0% plus SOFR (SOFR floor of 4.5%).

(13)Base interest rate of 8.5% plus SOFR (SOFR floor of 5.0%).

(14)Base interest rate of 13.0%.

(15)Base weighted average interest rate of 14.7% plus SOFR (SOFR floor of 4.0%). Cash interest rate for CRE Private Company A represents a blended rate of differing cash interest rates applicable to each of the senior and subordinate loans to which the Company is a lender under the credit agreements. The subordinate loan component bears interest at a base interest rate of 15.31% plus SOFR (SOFR floor of 4.0%) and the senior loan component bears interest at a base interest rate of 3.48% plus SOFR (SOFR floor of 4.0%).

(16)Base interest rate of 13.0%.

LOANS HELD FOR INVESTMENT AT FAIR VALUE

6 Months Ended

Jun. 30, 2024

LOANS HELD FOR INVESTMENT AT FAIR VALUE [Abstract]

LOANS HELD FOR INVESTMENT AT FAIR VALUE

As of June 30, 2024 and December 31, 2023, the Company’s portfolio included one and two loans held at fair value, respectively. The aggregate originated commitment under these loans was approximately $77.8 million and $94.2 million, respectively, and outstanding principal was approximately $49.7 million and $71.9 million as of June 30, 2024 and December 31, 2023, respectively. For the six months ended June 30, 2024, the Company received approximately $4.0 million of principal repayments of loans held at fair value and sold $19.3 million of the Company’s investment in Private Company B. As of June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023:


	As of June 30, 2024
	Fair Value(1)		Carrying Value(2)		Outstanding Principal(2)		Weighted Average Remaining Life (Years)(3)

Senior term loan	$	34,661,390	$	49,618,382	$	49,729,397	0.0
Total loan held at fair value	$	34,661,390	$	49,618,382	$	49,729,397	0.0


	As of December 31, 2023
	Fair Value(1)		Carrying Value(2)		Outstanding Principal(2)		Weighted Average Remaining Life (Years)(4)

Senior term loans	$	61,720,705	$	71,644,003	$	71,883,402	0.4
Total loans held at fair value	$	61,720,705	$	71,644,003	$	71,883,402	0.4

(1)Refer to Note 14.

(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)As of June 30, 2024, the maturity date passed on the credit facility with Private Company A without repayment.

(4)Weighted average remaining life is calculated based on the fair value of the loans as of December 31, 2023. As of December 31, 2023, the weighted average remaining life only reflects the remaining life of the Private Company A Credit Facility.

The following table presents changes in loans held at fair value as of and for the six months ended June 30, 2024:


	Principal		Original Issue Discount		Unrealized Gains (Losses)		Fair Value

Total loans held at fair value at December 31, 2023	$	71,883,402	$	(239,399)	$	(9,923,298)	$	61,720,705

Change in unrealized gains (losses) on loans at fair value, net	—		—		(5,033,694)		(5,033,694)

Accretion of original issue discount	—		128,384		—		128,384
Loan repayments	(4,003,945)		—		—		(4,003,945)
Sale of loans	(19,284,846)		—		—		(19,284,846)
PIK interest	1,134,786		—		—		1,134,786
Total loans held at fair value at June 30, 2024	$	49,729,397	$	(111,015)	$	(14,956,992)	$	34,661,390

As of June 30, 2024, the Company had one loan held at fair value on nonaccrual status. Effective March 1, 2024, the Company placed Private Company A on nonaccrual status with an outstanding principal amount of approximately $49.7 million and an unrealized loss of approximately $(15.0) million as of June 30, 2024.

A more detailed listing of the Company’s loan held at fair value portfolio based on information available as of June 30, 2024 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, GA, MA, NM	C, D	$	34,661,390	$	49,618,382	$	49,729,397	15.8	%	(6)	5/8/2024	I/O


Total loan held at fair value			$	34,661,390	$	49,618,382	$	49,729,397

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

(2)Refer to Note 14.

(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 average interest rate of 13.0% and payment-in-kind (“PIK”) weighted average interest rate of 2.8%. In October 2023, AFC Agent LLC (“AFC Agent”) delivered a notice of default to Private Company A based on certain financial and other covenant defaults and began charging additional default interest of 5.0%, beginning as of July 1, 2023, in accordance with the terms of the Private Company A Credit Facility. Effective March 1, 2024, the Company placed the borrower on nonaccrual status. The maturity date passed on the credit facility to Private Company A without repayment. In November 2023, Private Company A was placed into receivership to maintain the borrower’s operations and maximize value for the benefit of its creditors. The court-appointed receiver is determining the amount of principal payments the borrower is able to repay either from operations or from sale of collateral assets on a monthly basis.

DEBT - Summary Of Interest Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
DEBT - Summary Of Interest Expense (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Line of Credit Facility [Line Items]
Interest expense	$ 1,320,000	$ 1,293,750	$ 2,669,887	$ 2,729,167
Unused fee expense	0	38,749	0	74,582
Amortization of deferred financing and offering costs	253,275	243,276	506,551	440,186
Total interest expense	1,573,275	1,575,775	3,176,438	3,243,935
Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest expense	26,250	0	82,387	26,667
Unused fee expense	0	38,749	0	74,582
Amortization of deferred financing and offering costs	95,943	77,194	191,887	116,452
Total interest expense	122,193	115,943	274,274	217,701
2027 Senior Notes
Line of Credit Facility [Line Items]
Interest expense	1,293,750	1,293,750	2,587,500	2,702,500
Unused fee expense	0	0	0	0
Amortization of deferred financing and offering costs	157,332	166,082	314,664	323,734
Total interest expense	$ 1,451,082	$ 1,459,832	$ 2,902,164	$ 3,026,234

- Definition

Amount of interest expense classified as operating and nonoperating. Includes, but is not limited to, cost of borrowing accounted for as interest expense.

+ References + Details

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 07, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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.
Entity Address, Address Line Two	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		20,667,094
Entity Central Index Key	0001822523
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Narrative (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Loans and Leases Receivable Disclosure [Line Items]
Number of loans held for investment \| loan	1	2
Loans held at fair value, aggregate commitments	$ 77,800,000	$ 94,200,000
Outstanding principal	49,729,397	$ 71,883,402
Loan repayments	4,003,945
Sale of loans	19,284,846
Non accrual status
Loans and Leases Receivable Disclosure [Line Items]
Outstanding principal	$ 49,700,000
Number of loans held at fair value \| loan	1
Accumulated unrealized loss	$ (15,000,000.0)

DEBT - Schedule of Maturities of Long-Term Debt (Details) - 2027 Senior Notes	Jun. 30, 2024 USD ($)
Line of Credit Facility [Line Items]
2024 (remaining)	$ 0
2025	0
2026	0
2027	90,000,000
2028	0
Thereafter	0
Total principal	90,000,000
Deferred financing costs included in senior notes	(1,688,279)
Total due senior notes, net	$ 88,311,721

SHAREHOLDERS' EQUITY - Summary of Stock Option Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Option Activity [Roll Forward]
Beginning balance (in shares)	2,168,952
Granted (in shares)	0	0
Exercised (in shares)	0	0
Forfeited (in shares)	0
Ending balance (in shares)	2,168,952
Options exercisable, Number of options (in shares)	2,123,596
Weighted-average grant date fair value per option
Beginning balance (in dollars per share)	$ 17.74
Granted - exercise price (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	0
Ending balance (in dollars per share)	17.74
Options exercisable, Weighted average exercise price (in dollars per share)	$ 17.72
Options, Additional Disclosures [Abstract]
Options outstanding, Weighted average remaining contractual term	3 years 9 months 7 days
Options exercisable, Weighted average remaining contractual term	3 years 9 months 3 days
Options outstanding, Aggregate intrinsic value	$ 0
Options exercisable, Aggregate intrinsic value	$ 0

ORGANIZATION (Details) - segment	6 Months Ended
ORGANIZATION (Details) - segment	Jun. 30, 2024	Jul. 09, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1
Sunrise Realty Trust, Inc. (“SUNS”) \| Subsequent Event
Subsequent Event [Line Items]
Ownership percent		0.00%

SHAREHOLDERS' EQUITY - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unity, Activity (Details) - Restricted Stock - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)			119,012
Granted (in shares)	0	1,159	209,397	126,393
Vested (in shares)		(16,347)	(62,338)	(19,558)
Forfeited (in shares)			0
Ending balance (in shares)	266,071		266,071
Weighted-average grant date fair value
Beginning balance (in dollars per share)			$ 16.06
Granted (in dollars per share)		$ 12.94	11.70	$ 15.55
Vested (in dollars per share)		$ 20.39	14.50	$ 19.60
Forfeited (in dollars per share)			0
Ending balance (in dollars per share)	$ 13.00		$ 13.00

LOAN RECEIVABLE HELD AT CARRYING VALUE

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

LOAN RECEIVABLE HELD AT CARRYING VALUE

As of June 30, 2024 and December 31, 2023, the Company’s portfolio included one loan receivable held at carrying value. The originated commitment under this loan was $4.0 million and outstanding principal was approximately $2.0 million as of June 30, 2024 and December 31, 2023, respectively.

The following table presents changes in loans receivable as of and for the six months ended June 30, 2024:


	Principal		Original Issue Discount		Carrying Value

Total loan receivable held at carrying value at December 31, 2023	$	2,041,744	$	(1,686)	$	2,040,058
Loan repayments	—		—		—
Total loan receivable held at carrying value at June 30, 2024	$	2,041,744	$	(1,686)	$	2,040,058

As of June 30, 2024, the Company had one loan receivable held at carrying value on nonaccrual status with an outstanding principal amount of approximately $2.0 million and amortized cost of approximately $2.0 million.

FAIR VALUE - Narrative (Details)	6 Months Ended
FAIR VALUE - Narrative (Details)	Jun. 30, 2024 USD ($)
Level 3
Defined Benefit Plan Disclosure [Line Items]
Change in unrealized losses on loans at fair value	$ (9,459,704)

INTEREST RESERVE

6 Months Ended

Jun. 30, 2024

INTEREST RESERVE [Abstract]

INTEREST RESERVE

At June 30, 2024 and December 31, 2023, the Company had no loans that included a loan-funded interest reserve. For the three and six months ended June 30, 2024, zero of aggregate interest income was earned and disbursed from the interest reserves. For the three and six months ended June 30, 2023, approximately $0.6 million and $3.6 million, respectively, of aggregate interest income was earned and disbursed from the interest reserves.

The following table presents changes in interest reserve as of and for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Beginning reserves	$	—	$	1,690,334	$	—	$	3,200,944
New reserves	—		—		—		1,526,065
Reserves disbursed	—		(559,793)		—		(3,596,468)
Ending reserves	$	—	$	1,130,541	$	—	$	1,130,541

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2024
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, 2023 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 accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information and include the accounts of the Company, and its wholly-owned subsidiaries. The unaudited interim consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated in consolidation. The current period’s results of operations will not necessarily be indicative of results that ultimately may be realized for the year ending December 31, 2024. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated 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 November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of the update on the Company’s future consolidated financial statements. In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of the update on the Company’s future consolidated financial statements.

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

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 in the Management Agreement), 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.

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 six months ended June 30, 2024 was approximately $2.9 million and $5.3 million, respectively. The Incentive Compensation for the three and six months ended June 30, 2023 was approximately $2.4 million and $5.2 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 in an amount equal to the proportional amount of time employees of the Manager spent providing services to the Company, as reasonably stipulated by time sheets.

The following table summarizes the related party costs incurred by the Company for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Affiliate Costs
Management fees	$	1,343,971	$	1,351,116	$	2,690,109	$	2,698,801
Less: outside fees earned	(214,190)		(427,581)		(588,993)		(906,225)
Base management fees	1,129,781		923,535		2,101,116		1,792,576
Incentive fees earned	2,855,247		2,389,958		5,346,674		5,225,136
General and administrative expenses reimbursable to Manager	749,944		897,202		1,532,263		1,983,229
Total	$	4,734,972	$	4,210,695	$	8,980,053	$	9,000,941

Amounts payable to the Company’s Manager as of June 30, 2024 and December 31, 2023 were approximately $4.9 million and $5.0 million, respectively.

The Manager is a wholly-owned subsidiary of Castleground Holdings LLC (f/k/a Advanced Flower Capital Management, LLC) (the “Parent Manager”). Leonard Tannenbaum, Executive Chairman of the Board and Chief Investment Officer, owns 75.0% of the outstanding equity of the Parent Manager. Similarly, Robyn Tannenbaum, President, Bernard Berman, a member of the Company’s Investment Committee, and Daniel Neville, Chief Executive Officer, currently own approximately 10.0%, 3.0% and 1.6%, respectively, of the Parent Manager.

Due to Affiliate

Amounts due to an affiliate of the Company as of June 30, 2024 and December 31, 2023 were approximately $24.5 thousand and $16.4 thousand, respectively.

Investments in Loans

From time to time, the Company may co-invest with other investment vehicles managed by the Manager or its affiliates, including the Manager, 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. Additionally, our Manager or its affiliates, including AFC Agent LLC (“AFC Agent”), may from time to time serve as administrative agent to the lenders under our co-investments. As of June 30, 2024, there were four co-invested loans held by the Company and affiliates of the Company.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

INTEREST RECEIVABLE (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Interest Receivable and Other Assets [Abstract]
Interest receivable	$ 1,659,502	$ 2,680,188
PIK receivable	34,570	1,009,974
Unused fees receivable	35,116	25,833
Total interest receivable	$ 1,729,188	$ 3,715,995

RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Related Party Transactions

The following table summarizes the related party costs incurred by the Company for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Affiliate Costs
Management fees	$	1,343,971	$	1,351,116	$	2,690,109	$	2,698,801
Less: outside fees earned	(214,190)		(427,581)		(588,993)		(906,225)
Base management fees	1,129,781		923,535		2,101,116		1,792,576
Incentive fees earned	2,855,247		2,389,958		5,346,674		5,225,136
General and administrative expenses reimbursable to Manager	749,944		897,202		1,532,263		1,983,229
Total	$	4,734,972	$	4,210,695	$	8,980,053	$	9,000,941

SHAREHOLDERS' EQUITY - Share-based Payment Arrangement, Option, Activity (Details) - shares	Jun. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Non-vested (in shares)	161,879	206,304
Vested (in shares)	2,212,753	2,168,328
Exercised (in shares)	(5,511)	(5,511)
Forfeited (in shares)	(200,169)	(200,169)
Balance (in shares)	2,168,952	2,168,952

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Expenses
Management and incentive fees, rebate	$ 214,190	$ 427,581	$ 588,993	$ 906,225

INTEREST RESERVE (Tables)

6 Months Ended

Jun. 30, 2024

INTEREST RESERVE [Abstract]

Summary of Changes in Interest Reserve

The following table presents changes in interest reserve as of and for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Beginning reserves	$	—	$	1,690,334	$	—	$	3,200,944
New reserves	—		—		—		1,526,065
Reserves disbursed	—		(559,793)		—		(3,596,468)
Ending reserves	$	—	$	1,130,541	$	—	$	1,130,541

DIVIDENDS AND DISTRIBUTIONS (Tables)

6 Months Ended

Jun. 30, 2024

DIVIDENDS AND DISTRIBUTIONS [Abstract]

Schedule of Dividends Payable

The following table summarizes the Company’s dividends declared during the six months ended June 30, 2024 and 2023:


	Record Date	Payment Date	Common Share Distribution Amount		Aggregate Amount Paid

Regular cash dividend	3/31/2023	4/14/2023	$	0.56	$	11,473,971
Regular cash dividend	6/30/2023	7/14/2023	0.48		9,819,695

2023 Period Subtotal			$	1.04	$	21,293,666
Regular cash dividend	3/31/2024	4/15/2024	$	0.48	$	9,920,205
Regular cash dividend	6/24/2024	7/15/2024	0.48		9,920,205
Special cash dividend	7/8/2024	7/15/2024	0.15		3,100,064

2024 Period Subtotal			$	1.11	$	22,940,474

RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
General and administrative expenses	$ 1,053,810	$ 1,075,873	$ 2,106,206	$ 3,082,008
Total	4,734,972	4,210,695	8,980,053	9,000,941
Related Party
Related Party Transaction [Line Items]
Management fees	1,343,971	1,351,116	2,690,109	2,698,801
Less: outside fees earned	(214,190)	(427,581)	(588,993)	(906,225)
Base management fees	1,129,781	923,535	2,101,116	1,792,576
Incentive fees earned	2,855,247	2,389,958	5,346,674	5,225,136
General and administrative expenses	$ 749,944	$ 897,202	$ 1,532,263	$ 1,983,229

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Changes in Loans Held at Carrying Value (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Principal
Total loans held at carrying value, principal, beginning balance	$ 314,376,929
New fundings	107,183,159
Loan repayments	(46,879,654)
Sale of loans	(90,000,000)
PIK interest	1,217,065
Loan amortization payments	(2,219,434)
Total loans held at carrying value, principal, ending balance	283,678,065
Original Issue Discount
Total loans held at carrying value, original issue discount, beginning balance	(13,111,531)
New fundings	(2,423,357)
Accretion of original issue discount	5,185,495
Sale of loans	251,662
Total loans held at carrying value, original issue discount, ending balance	(10,097,731)
Carrying Value
Total loans held at carrying value, carrying value, beginning balance	301,265,398
New fundings	104,759,802
Accretion of original issue discount	5,185,495
Loan repayments	(46,879,654)
Sale of loans	(89,748,338)
PIK interest	1,217,065
Loan amortization payments	(2,219,434)
Total loans held at carrying value, carrying value, ending balance	$ 273,580,334

FAIR VALUE - Fair Value Measurements of Changes in Loans using Level 3 inputs (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Changes in Loans Using Level 3 Inputs [Roll Forward]
Total loans held at fair value, fair value, beginning balance	$ 61,720,705
Change in unrealized gains (losses) on loans at fair value, net	(5,033,694)
Accretion of original issue discount	128,384
PIK interest	1,134,786
Total loans held at fair value, fair value, ending balance	34,661,390
Level 3
Changes in Loans Using Level 3 Inputs [Roll Forward]
Total loans held at fair value, fair value, beginning balance	61,720,705
Change in unrealized gains (losses) on loans at fair value, net	(5,033,694)
Loan repayments	(4,003,945)
Sale of loans	(19,284,846)
Accretion of original issue discount	128,384
PIK interest	1,134,786
Total loans held at fair value, fair value, ending balance	$ 34,661,390

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net income (loss)	$ 16,392,005	$ 22,160,607
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Decrease) increase in provision for current expected credit losses	(1,258,566)	(903,761)
Realized (gains) losses on investments, net	93,338	26,384
(Gain) loss on extinguishment of debt	0	(1,986,381)
Change in unrealized (gains) losses on loans at fair value, net	5,033,694	1,940,609
Accretion of deferred loan original issue discount and other discounts	(5,313,879)	(2,496,655)
Amortization of deferred financing and offering costs	506,551	440,186
Stock-based compensation	912,565	399,427
Payment-in-kind interest	(2,351,851)	(8,109,786)
Changes in operating assets and liabilities
Accounts receivable	55	0
Interest receivable	1,991,747	2,652,172
Prepaid expenses and other assets	50,903	(145,996)
Interest reserve	0	(3,570,403)
Accrued interest	(5,250)	(147,500)
Accrued management and incentive fees, net	513,302	(578,241)
Accrued direct administrative expenses	(601,946)	(600,983)
Accounts payable and other liabilities	729,429	448,783
Net cash provided by (used in) operating activities	16,692,097	9,528,462
Cash flows from investing activities:
Issuance of and fundings on loans	(90,087,162)	(16,796,204)
Proceeds from sales of loans	96,061,029	21,312,827
Principal repayment of loans	53,103,033	18,509,287
Net cash provided by (used in) investing activities	59,076,900	23,025,910
Cash flows from financing activities:
Payment of financing costs	(225,000)	(225,000)
Redemption of preferred shares	(125,000)	0
Borrowings on revolving credit facility	95,000,000	0
Repayment of revolving credit facility	(102,000,000)	(60,000,000)
Dividends paid to common and preferred shareholders	(19,747,400)	(22,885,311)
Repayment of senior notes	0	(7,737,500)
Net cash provided by (used in) financing activities	(27,097,400)	(90,847,811)
Net (decrease) increase in cash and cash equivalents	48,671,597	(58,293,439)
Cash and cash equivalents, beginning of period	121,626,453	140,372,841
Cash and cash equivalents, end of period	170,298,050	82,079,402
Supplemental disclosure of non-cash activity:
Interest reserve withheld from funding of loans	0	1,500,000
Non-cash funding of new loan	14,672,640	0
OID withheld from funding of loans	2,423,357	2,610,000
Payable for securities purchased	0	7,995,934
Dividends declared and not yet paid	13,020,269	9,819,695
Supplemental information:
Interest paid during the period	2,675,138	2,951,250
Income taxes paid during the period	567,070	415,359
Line of Credit
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of deferred financing and offering costs	191,887	116,452
2027 Senior Notes
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of deferred financing and offering costs	$ 314,664	$ 323,734

CURRENT EXPECTED CREDIT LOSSES - Financing Receivable Credit Quality Indicators (Details)	Jun. 30, 2024 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 88,091,183
2023	28,074,169
2022	59,329,569
2021	98,085,413
2020	2,040,058
Total	275,620,392
1
Financing Receivable, Credit Quality Indicator [Line Items]
2024	16,209,825
2023	0
2022	0
2021	0
2020	0
Total	16,209,825
2
Financing Receivable, Credit Quality Indicator [Line Items]
2024	21,383,399
2023	0
2022	0
2021	0
2020	0
Total	21,383,399
3
Financing Receivable, Credit Quality Indicator [Line Items]
2024	50,497,959
2023	28,074,169
2022	47,816,426
2021	20,314,372
2020	0
Total	146,702,926
4
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	0
2021	0
2020	0
Total	0
5
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	11,513,143
2021	77,771,041
2020	2,040,058
Total	$ 91,324,242

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

As of June 30, 2024 and December 31, 2023, the Company had the following commitments to fund various investments:



	As of June 30, 2024		As of December 31, 2023

Total original loan commitments	$	392,900,838	$	431,239,913
Less: drawn commitments	(375,102,310)		(421,239,913)
Total undrawn commitments	$	17,798,528	$	10,000,000

The Company from time to time may be a party to litigation in the normal course of business. As of June 30, 2024, the Company is not aware of any legal claims that could materially impact its business, financial condition or results of operations.

On March 17, 2023, the Company appointed Brandon Hetzel to serve as its Chief Financial Officer and Treasurer in place of Brett Kaufman, effective as of such date, with Mr. Kaufman’s employment with AFC Management, LLC, the Company’s external manager (the “Manager”), terminated, effective as of April 17, 2023 (the “Separation Date”). In connection with his termination, Mr. Kaufman received (i) twelve (12) months’ worth of his current base salary, (ii) his annual target bonus, (iii) continued payment by our Manager of 100% of the COBRA premiums for him and his dependents for a period of twelve (12) months following his Separation Date, (iv) accelerated vesting of one (1) additional tranche of each of Mr. Kaufman’s outstanding equity awards, and (v) extension of the exercise period for Mr. Kaufman’s outstanding options until one (1) year following the Separation Date, contingent on Mr. Kaufman executing and not revoking a release of claims in favor of the Company. During the six months ended June 30, 2024 and 2023, the Company recorded zero and approximately $0.7 million in severance expense within general and administrative expenses within the unaudited interim consolidated statements of operations, respectively.

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 on 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.

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Interest income	$ 19,957,521	$ 17,675,188	$ 36,318,581	$ 36,175,674
Interest expense	(1,573,275)	(1,575,775)	(3,176,438)	(3,243,935)
Net interest income	18,384,246	16,099,413	33,142,143	32,931,739
Expenses
Management and incentive fees, net (less rebate of $214,190, $427,581, 588,993 and 906,225, respectively)	3,985,028	3,313,493	7,447,790	7,017,712
General and administrative expenses	1,053,810	1,075,873	2,106,206	3,082,008
Stock-based compensation	369,343	130,769	912,565	411,347
Professional fees	1,014,208	419,577	1,970,776	840,475
Total expenses	6,422,389	4,939,712	12,437,337	11,351,542
Decrease (increase) in provision for current expected credit losses	6,190,240	1,606,187	1,258,566	903,761
Realized gains (losses) on investments, net	0	0	(93,338)	(26,384)
Gain (loss) on extinguishment of debt	0	0	0	1,986,381
Change in unrealized gains (losses) on loans at fair value, net	(1,420,001)	(462,918)	(5,033,694)	(1,940,609)
Net income before income taxes	16,732,096	12,302,970	16,836,340	22,503,346
Income tax expense	285,975	167,637	444,335	342,739
Net income	$ 16,446,121	$ 12,135,333	$ 16,392,005	$ 22,160,607
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 0.80	$ 0.59	$ 0.79	$ 1.08
Diluted earnings per common share (in dollars per share)	$ 0.80	$ 0.59	$ 0.79	$ 1.08
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in shares)	20,400,004	20,317,341	20,396,940	20,310,606
Diluted weighted average shares of common stock outstanding (in shares)	20,437,799	20,322,857	20,418,897	20,381,724

SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Share-based Payment Arrangement, Option, Activity

The following table summarizes the (i) non-vested options granted, (ii) vested options granted, (iii) exercised and (iv) forfeited options granted for the Company’s directors and officers and employees of the Manager as of June 30, 2024 and December 31, 2023:



	As of June 30, 2024	As of December 31, 2023
Non-vested	161,879	206,304
Vested	2,212,753	2,168,328
Exercised	(5,511)	(5,511)
Forfeited	(200,169)	(200,169)
Balance	2,168,952	2,168,952

Summary of 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 as of and during the six months ended June 30, 2024:


	Number of options	Weighted-average exercise price		Weighted-average remaining contractual term	Aggregate intrinsic value
Outstanding as of December 31, 2023	2,168,952	$	17.74
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding as of June 30, 2024	2,168,952	$	17.74	3.77 years	$	—
Exercisable as of June 30, 2024	2,123,596	$	17.72	3.76 years	$	—

Schedule of Nonvested Share Activity

The following table summarizes the non-vested restricted stock (i) granted, (ii) vested and (iii) forfeited for the Company’s directors and officers and employees of the Manager as of June 30, 2024 and December 31, 2023:



	As of June 30, 2024	As of December 31, 2023
Granted	400,371	190,974
Vested	(100,366)	(38,028)
Forfeited	(33,934)	(33,934)
Balance	266,071	119,012

Schedule of Restricted Stock Awards Activity

The following tables summarize the restricted stock activity as of and during the six months ended June 30, 2024:


	Number of shares of restricted stock	Weighted-average grant date fair value
Balance as of December 31, 2023	119,012	$	16.06
Granted	209,397	11.70
Vested	(62,338)	14.50
Forfeited	—	—
Balance as of June 30, 2024	266,071	$	13.00

CURRENT EXPECTED CREDIT LOSSES

6 Months Ended

Jun. 30, 2024

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 the “CECL Reserve” using a model that considers multiple datapoints and methodologies that may include 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 the fixed charge coverage ratio, loan-to-value ratio, property type and geographic location. Estimating the CECL Reserve also requires significant judgment with respect to various factors, including but not limited to the expected timing of loan repayments and 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.

As of June 30, 2024 and December 31, 2023, the Company’s CECL Reserve for its loans held at carrying value and loan receivable held at carrying value is approximately $25.2 million and $26.4 million, respectively, or 9.13% and 8.71%, respectively, of the Company’s total loans held at carrying value and loan receivable held at carrying value of approximately $275.6 million and $303.3 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 loan receivable held at carrying value of approximately $25.0 million and $26.3 million, respectively, and a liability for unfunded commitments of approximately $0.2 million and $0.1 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 loan receivable held at carrying value as of and for the three and six months ended June 30, 2024 was as follows:


	Outstanding (1)		Unfunded (2)		Total
Balance at March 31, 2024	$	31,347,462	$	9,135	$	31,356,597
(Decrease) increase in provision for current expected credit losses	(6,338,438)		148,198		(6,190,240)
Write-offs	—		—		—
Recoveries	—		—		—
Balance at June 30, 2024	$	25,009,024	$	157,333	$	25,166,357


	Outstanding (1)		Unfunded (2)		Total
Balance at December 31, 2023	$	26,309,450	$	115,473	$	26,424,923
(Decrease) increase in provision for current expected credit losses	(1,300,426)		41,860		(1,258,566)
Write-offs	—		—		—
Recoveries	—		—		—
Balance at June 30, 2024	$	25,009,024	$	157,333	$	25,166,357

(1)As of June 30, 2024 and December 31, 2023, the CECL Reserve related to outstanding balances on loans held at carrying value and loan receivable held at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets.

(2)As of June 30, 2024 and December 31, 2023, 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 June 30, 2024, the carrying value, excluding the CECL Reserve, of the Company’s loans held at carrying value and loan receivable held at carrying value within each risk rating by year of origination is as follows:


Risk Rating:	2024		2023		2022		2021		2020		Total
1	$	16,209,825	$	—	$	—	$	—	$	—	$	16,209,825
2	21,383,399		—		—		—		—		21,383,399
3	50,497,959		28,074,169		47,816,426		20,314,372		—		146,702,926
4	—		—		—		—		—		—
5	—		—		11,513,143		77,771,041		2,040,058		91,324,242
Total	$	88,091,183	$	28,074,169	$	59,329,569	$	98,085,413	$	2,040,058	$	275,620,392

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-42

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 44
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-44

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-21

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-11

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-7

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-20

+ Details

DEBT

6 Months Ended

Jun. 30, 2024

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 (as amended from time to time, 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. Upon entering into the Revolving Credit Agreement, the Company incurred a one-time commitment fee expense of approximately $0.5 million, which was included in prepaid expenses and other assets on the Company’s consolidated balance sheets and 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, payable semi-annually in arrears, which is included within interest expense in the Company’s unaudited interim consolidated statements of operations. Based on the terms of the Revolving Credit Agreement, the Company’s estimated average cash balance will exceed the minimum balance required to waive the unused line fee and as such, the Company did not incur an unused line fee for the three and six months ended June 30, 2024. As of June 30, 2024 and December 31, 2023, outstanding borrowings under the Revolving Credit Facility were $35.0 million and $42.0 million, respectively, and $25.0 million and $18.0 million was available for borrowing as of June 30, 2024 and December 31, 2023, 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.

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, which began 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 used 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. TRS1 and SUNS are currently subsidiary guarantors under the Indenture. Following the completion of the Spin-Off, SUNS will no longer be a guarantor under the Indenture.

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.

During the six months ended June 30, 2023, the Company repurchased $10.0 million in principal amount of the Company’s 2027 Senior Notes at 77.4% of par value, plus accrued interest. This resulted in a gain on extinguishment of debt of approximately $2.0 million, recorded within the unaudited interim consolidated statements of operations. No repurchases took place during the six months ended June 30, 2024. As of June 30, 2024, the Company had $90.0 million in principal amount of the 2027 Senior Notes outstanding.

The 2027 Senior Notes are due on May 1, 2027. Scheduled principal payments on the 2027 Senior Notes as of June 30, 2024 are as follows:


	2027 Senior Notes
Year
2024 (remaining)	$	—
2025	—
2026	—
2027	90,000,000
2028	—
Thereafter	—
Total principal	90,000,000
Deferred financing costs included in senior notes	(1,688,279)
Total due senior notes, net	$	88,311,721

The following tables reflect a summary of interest expense incurred during the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30, 2024
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	1,293,750	$	26,250	$	1,320,000
Unused fee expense	—		—		—
Amortization of deferred financing costs	157,332		95,943		253,275
Total interest expense	$	1,451,082	$	122,193	$	1,573,275


	Three months ended June 30, 2023
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	1,293,750	$	—	$	1,293,750
Unused fee expense	—		38,749		38,749
Amortization of deferred financing costs	166,082		77,194		243,276
Total interest expense	$	1,459,832	$	115,943	$	1,575,775


	Six months ended June 30, 2024
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	2,587,500	$	82,387	$	2,669,887
Unused fee expense	—		—		—
Amortization of deferred financing costs	314,664		191,887		506,551
Total interest expense	$	2,902,164	$	274,274	$	3,176,438


	Six months ended June 30, 2023
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	2,702,500	$	26,667	$	2,729,167
Unused fee expense	—		74,582		74,582
Amortization of deferred financing costs	323,734		116,452		440,186
Total interest expense	$	3,026,234	$	217,701	$	3,243,935

- 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

+ Details

CURRENT EXPECTED CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2024

Credit Loss [Abstract]

Summary of Financing Receivable, Allowance for Credit Loss


	Outstanding (1)		Unfunded (2)		Total
Balance at March 31, 2024	$	31,347,462	$	9,135	$	31,356,597
(Decrease) increase in provision for current expected credit losses	(6,338,438)		148,198		(6,190,240)
Write-offs	—		—		—
Recoveries	—		—		—
Balance at June 30, 2024	$	25,009,024	$	157,333	$	25,166,357


	Outstanding (1)		Unfunded (2)		Total
Balance at December 31, 2023	$	26,309,450	$	115,473	$	26,424,923
(Decrease) increase in provision for current expected credit losses	(1,300,426)		41,860		(1,258,566)
Write-offs	—		—		—
Recoveries	—		—		—
Balance at June 30, 2024	$	25,009,024	$	157,333	$	25,166,357

Summary of Financing Receivable Credit Quality Indicators

Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:


Rating			Definition
1			Very Low Risk — Materially exceeds performance metrics included in original or current credit underwriting and business plan
2			Low Risk — Collateral and business performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan
3			Medium Risk — Collateral and business performance meets, or is on track to meet underwriting expectations; business plan is met or can reasonably be achieved
4			High Risk/ Potential for Loss — Collateral performance falls short of underwriting, material differences from business plans, defaults may exist, or may soon exist absent material improvement. Risk of recovery of interest exists
5			Impaired/ Loss Likely — Performance is significantly worse than underwriting with major variances from business plan observed. Loan covenants or financial milestones have been breached; exit from loan or refinancing is uncertain. Full recovery of principal is unlikely


Risk Rating:	2024		2023		2022		2021		2020		Total
1	$	16,209,825	$	—	$	—	$	—	$	—	$	16,209,825
2	21,383,399		—		—		—		—		21,383,399
3	50,497,959		28,074,169		47,816,426		20,314,372		—		146,702,926
4	—		—		—		—		—		—
5	—		—		11,513,143		77,771,041		2,040,058		91,324,242
Total	$	88,091,183	$	28,074,169	$	59,329,569	$	98,085,413	$	2,040,058	$	275,620,392

SUBSEQUENT EVENTS (Details)	1 Months Ended	6 Months Ended
SUBSEQUENT EVENTS (Details)	Jul. 31, 2024 USD ($) loan	Jun. 30, 2024 USD ($)	Jul. 09, 2024	Jul. 08, 2024 USD ($) shares	Dec. 31, 2023 USD ($)
Subsequent Event [Line Items]
Loans held at carrying value, outstanding principal		$ 283,678,065			$ 314,376,929
Loans held for investments aggregate commitments		311,100,000			$ 333,100,000
Loans held at carrying value, outstanding principal fundings		$ 107,200,000
Sub. of Public Co. M \| Base Rate
Subsequent Event [Line Items]
Interest Rate		9.50%
Subsequent Event \| Sunrise Realty Trust, Inc. (“SUNS”)
Subsequent Event [Line Items]
Ownership percent			0.00%
Subsequent Event \| Discontinued Operations, Disposed of by Means Other than Sale, Spinoff \| Sunrise Realty Trust, Inc. (“SUNS”)
Subsequent Event [Line Items]
Assets contributed				$ 115,000,000
Subsequent Event \| Sub. of Public Co. M
Subsequent Event [Line Items]
Principal prepayment	$ 10,000,000
Prepayment premiun	200,000
Loans held at carrying value, outstanding principal	$ 2,800,000
Subsequent Event \| CRE Private Co. C \| Base Rate
Subsequent Event [Line Items]
Interest Rate	4.25%
Subsequent Event \| CRE Private Co. C \| Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Basis spread on variable rate, interest rate floor	0.0475
Subsequent Event \| TX \| CRE Private Co. C \| Multifamily
Subsequent Event [Line Items]
Loans held for investments aggregate commitments	$ 14,100,000
Discount rate	1.00%
Loans held at carrying value, outstanding principal fundings	$ 11,400,000
Receivable with imputed interest, term	3 years
Number of extensions \| loan	2
Extension period	12 months
Extension fee percentage	0.50%
Subsequent Event \| Sunrise Realty Trust, Inc. (“SUNS”) \| Common Stock
Subsequent Event [Line Items]
Exchange ratio \| shares				0.3333
Subsequent Event \| Affiliated Entity \| TX \| CRE Private Co. C \| Multifamily
Subsequent Event [Line Items]
Loans held at carrying value, outstanding principal	$ 35,200,000
Loans held for investments aggregate commitments	21,100,000
Loans held at carrying value, outstanding principal fundings	$ 17,000,000

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the consolidated financial statements were available to be issued. There were no material subsequent events, other than those described below, that required disclosure in these unaudited interim consolidated financial statements. In July 2024, the Company received a prepayment on its investment in Subsidiary of Public Company M. The Company received approximately $10.0 million in principal prepayments and $0.2 million prepayment premium. Following the prepayment, the outstanding principal balance on the Company’s investment in Subsidiary of Public Company M is approximately $2.8 million. In July 2024, pre-Spin-Off, SUNS and an affiliate of SUNS entered into a senior secured credit facility with CRE Private Company C for a total aggregate commitment amount of approximately $35.2 million for the refinance of an active adult multi-family rental development in southwest Austin, Texas. SUNS committed a total of approximately $14.1 million, and an affiliate of SUNS committed the remaining approximately $21.1 million. The senior loan commitments were issued by SUNS and an affiliate at a discount of 1.0%. At closing, the Company funded approximately $11.4 million and an affiliate of SUNS funded approximately $17.0 million. The loan bears interest at a rate of SOFR plus 4.25%, with a rate index floor of 4.75%. The loan with CRE Private Company C has a maturity date of three years, which may be extended, at the borrower’s option, by two separate twelve-month extensions subject to the satisfaction of certain conditions on each extension in exchange for an extension fee of 0.50% of the total loan amount. The loan with CRE Private Company C is secured by a deed of trust on the property and any deposit and reserve accounts established by the terms of the credit facility. The proceeds of the loans will be used to, among other things, fund the completion of construction and other reserves, refinance existing debt and pay transaction costs. Following completion of the Spin-Off, the loan with CRE Private Company C is part of the Spin-Off CRE portfolio held by SUNS. Spin-Off On July 9, 2024, SUNS became an independent, publicly-traded company, trading on the Nasdaq Capital Market under the symbol “SUNS”. The Spin-Off was effected by the distribution of all of the outstanding shares of SUNS common stock to the Company’s shareholders of record as of the close of business on the Record Date. The Company’s shareholders of record as of the Record Date received one share of SUNS common stock for every three shares of the Company’s common stock held as of the Record Date. The Company retained no ownership interest in SUNS following the Spin-Off. Beginning in the third quarter of fiscal year 2024, the historical financial results of the SUNS business for periods prior to the Distribution Date will be reflected in the Company’s consolidated financial statements as discontinued operations. Prior to the Spin-Off, SUNS held approximately $115 million comprised of the SUNS’ CRE loan portfolio and cash. In connection with the Spin-Off, the Company entered into several agreements with SUNS that govern the relationship between the Company and SUNS following the spin-off, including the Separation and Distribution Agreement and the Tax Matters Agreement. These agreements provide for the allocation between the Company and SUNS of the assets, liabilities and obligations (including, among others, investments, property and tax-related assets and liabilities) of the Company and its subsidiaries attributable to periods prior to, at and after the Spin-Off.

CURRENT EXPECTED CREDIT LOSSES - Narrative (Details) - USD ($)	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Current expected credit loss reserve	$ 25,009,024		$ 26,309,450
CECL Reserve
Financing Receivable, Past Due [Line Items]
Current expected credit loss reserve	$ 25,166,357	$ 31,356,597	$ 26,424,923
Basis points of total loans and loans receivable at carrying value	9.13%		8.71%
Loans receivable at carrying value, commitment balance	$ 275,600,000		$ 303,300,000
CECL Reserve \| Outstanding
Financing Receivable, Past Due [Line Items]
Current expected credit loss reserve	25,009,024	31,347,462	26,309,450
CECL Reserve \| Unfunded
Financing Receivable, Past Due [Line Items]
Current expected credit loss reserve	$ 157,333	$ 9,135	$ 115,473

- Definition

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

+ References + Details

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Loans Held at Fair Value (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 34,661,390	$ 61,720,705
Carrying Value	49,618,382	71,644,003
Outstanding principal	$ 49,729,397	$ 71,883,402
Weighted Average Remaining Life (Years)	0 years	4 months 24 days
Senior term loan
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 34,661,390	$ 61,720,705
Carrying Value	49,618,382	71,644,003
Outstanding principal	$ 49,729,397	$ 71,883,402
Weighted Average Remaining Life (Years)	0 years	4 months 24 days

INCOME TAX (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The income tax provision for the Company and TRS1 consisted of the following for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Current(1)	$	285,975	$	167,637	$	444,335	$	342,469
Deferred	—		—		—		—
Excise tax	—		—		—		270
Total income tax expense, including excise tax	$	285,975	$	167,637	$	444,335	$	342,739

(1)During the three and six months ended June 30, 2024, the Company incurred federal taxes of approximately $183.0 thousand and $288.3 thousand and state and local taxes of approximately $103.0 thousand and $156.0 thousand, respectively. During the three and six months ended June 30, 2023, the Company incurred federal taxes of approximately $131.5 thousand and $263.0 thousand and state and local taxes of approximately $36.1 thousand and $79.5 thousand, respectively.

LOAN RECEIVABLE HELD AT CARRYING VALUE - Changes in Loans Receivable (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Principal
Total loans receivable at carrying value, principal, beginning balance	$ 2,041,744	$ 2,041,744
Loan repayments	0
Total loans receivable at carrying value, principal, ending balance	2,041,744	$ 2,041,744
Original Issue Discount
Total loans receivable at carrying value, original issue discount, beginning balance	(1,686)
Total loans receivable at carrying value, original issue discount, ending balance	(1,686)
Carrying Value
Total loans receivable at carrying value, carrying value, beginning balance	2,040,058
Loan repayments	0
Total loans receivable at carrying value, carrying value, ending balance	$ 2,040,058

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481990/310-10-45-13

Reference 2: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-7A

Reference 3: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-29

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph a
-Subparagraph (1)
-Publisher SEC

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph a
-Subparagraph (2)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1404
-Paragraph a
-Publisher SEC

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 80
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479294/326-20-55-80

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 79
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479294/326-20-55-79

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479344/326-20-45-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(b))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-14

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-5

+ Details

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2024
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 accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information and include the accounts of the Company, and its wholly-owned subsidiaries. The unaudited interim consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated in consolidation. The current period’s results of operations will not necessarily be indicative of results that ultimately may be realized for the year ending December 31, 2024.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of consolidated 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 Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of the update on the Company’s future consolidated financial statements. In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of the update on the Company’s future consolidated financial statements.
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 the “CECL Reserve” using a model that considers multiple datapoints and methodologies that may include 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 the fixed charge coverage ratio, loan-to-value ratio, property type and geographic location. Estimating the CECL Reserve also requires significant judgment with respect to various factors, including but not limited to the expected timing of loan repayments and 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.

- Definition

Disclosure of accounting policy 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. Includes, but is not limited to, methodology used to estimate allowance for credit loss, how writeoff of uncollectible amount is recognized, and determination of past due status and nonaccrual status.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.M.2.Q4)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483530/326-20-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-14

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 30
-Paragraph 5A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479391/326-20-30-5A

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-3C

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 35
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479366/326-20-35-8A

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-3D

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479344/326-20-45-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 30
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479175/326-30-30-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 3C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-3C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 3A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-3A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 3D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-3D

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 35
-Paragraph 13A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479148/326-30-35-13A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 30
-Paragraph 4A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479391/326-20-30-4A

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 35
-Paragraph 7A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479148/326-30-35-7A

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-21

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-11

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-7

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-17

+ Details

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Loans Held at Carrying Value Portfolio (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Dec. 01, 2023
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 283,678,065	$ 314,376,929
Original Issue Discount	(10,097,731)	(13,111,531)
Carrying Value	273,580,334	301,265,398
Subordinate debt
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	21,630,051
Original Issue Discount	(246,652)
Carrying Value	21,383,399
Senior term loan
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	262,048,014	314,376,929
Original Issue Discount	(9,851,079)	(13,111,531)
Carrying Value	$ 252,196,935	$ 301,265,398
Sub. of Private Co. G
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal			$ 79,200,000
Sub. of Private Co. G \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.50%
Sub. of Private Co. G \| Multi State \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 79,215,888
Original Issue Discount	(1,444,847)
Carrying Value	$ 77,771,041
Interest Rate	12.50%
Private Co. K
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal			$ 12,200,000
Private Co. K \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.00%
Private Co. K \| Secured Overnight Financing Rate (SOFR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	1.00%
Private Co. K \| PIK Interest Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	2.00%
Private Co. K \| Monthly Cash Interest \| Minimum
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	20.00%
Private Co. K \| Monthly Cash Interest \| Maximum
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	80.00%
Private Co. K \| MA \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 12,195,762
Original Issue Discount	(682,619)
Carrying Value	$ 11,513,143
Interest Rate	19.30%
Private Co. J \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.00%
Private Co. J \| Secured Overnight Financing Rate (SOFR)
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	2.00%
Private Co. J \| MO \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 20,543,967
Original Issue Discount	(229,595)
Carrying Value	$ 20,314,372
Interest Rate	19.30%
Private Co. L \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	8.40%
Private Co. L \| Secured Overnight Financing Rate (SOFR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	5.00%
Private Co. L \| OH \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 37,114,073
Original Issue Discount	(866,681)
Carrying Value	$ 36,247,392
Interest Rate	13.70%
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	$ 12,822,000
Original Issue Discount	(1,252,966)
Carrying Value	$ 11,569,034
Interest Rate	9.50%
Private Co. M \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	9.00%
Private Co. M \| AZ \| D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 31,399,498
Original Issue Discount	(3,325,329)
Carrying Value	$ 28,074,169
Interest Rate	9.00%
Private Co. N - Real Estate \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	8.00%
Private Co. N - Real Estate \| Secured Overnight Financing Rate (SOFR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.50%
Private Co. N - Real Estate \| FL \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 17,491,921
Original Issue Discount	(656,499)
Carrying Value	$ 16,835,422
Interest Rate	13.30%
Private Co. N - Non-Real Estate \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	8.00%
Private Co. N - Non-Real Estate \| Secured Overnight Financing Rate (SOFR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.50%
Private Co. N - Non-Real Estate \| FL \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 17,200,000
Original Issue Discount	(645,000)
Carrying Value	$ 16,555,000
Interest Rate	13.30%
Private Co. O \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	8.50%
Private Co. O \| Secured Overnight Financing Rate (SOFR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	5.00%
Private Co. O \| Multi State \| C
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 2,728,647
Original Issue Discount	(293,750)
Carrying Value	$ 2,434,897
Interest Rate	13.80%
Private Co. P \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	13.00%
Private Co. P \| MI \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 15,126,433
Original Issue Discount	(453,793)
Carrying Value	$ 14,672,640
Interest Rate	13.00%
CRE Private Co. A \| Base Rate \| Subordinate debt
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	15.31%
CRE Private Co. A \| Base Rate \| Senior term loan
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	3.48%
CRE Private Co. A \| Secured Overnight Financing Rate (SOFR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.00%
CRE Private Co. A \| Secured Overnight Financing Rate (SOFR) \| Subordinate debt
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.00%
CRE Private Co. A \| Secured Overnight Financing Rate (SOFR) \| Senior term loan
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.00%
CRE Private Co. A \| Base Weighted Average Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	14.70%
CRE Private Co. A \| TX \| Mixed-use
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 16,209,825
Original Issue Discount	0
Carrying Value	$ 16,209,825
Interest Rate	20.00%
CRE Private Co. B \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	13.00%
CRE Private Co. B \| FL \| Residential
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 21,630,051
Original Issue Discount	(246,652)
Carrying Value	$ 21,383,399
Interest Rate	13.00%

DIVIDENDS AND DISTRIBUTIONS (Details) - USD ($)		3 Months Ended					6 Months Ended
DIVIDENDS AND DISTRIBUTIONS (Details) - USD ($)	Jul. 08, 2024	Jun. 30, 2024	Jun. 24, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jul. 08, 2024	Jun. 30, 2024	Jun. 30, 2023
Dividends Payable [Line Items]
Aggregate Amount Paid		$ 13,020,269			$ 9,819,695			$ 22,940,474	$ 21,293,666
Regular cash dividend
Dividends Payable [Line Items]
Common Share Distribution Amount (in dollars per share)			$ 0.48	$ 0.48	$ 0.48	$ 0.56			$ 1.04
Aggregate Amount Paid			$ 9,920,205	$ 9,920,205	$ 9,819,695	$ 11,473,971			$ 21,293,666
Special cash dividend \| Subsequent Event
Dividends Payable [Line Items]
Common Share Distribution Amount (in dollars per share)	$ 0.15
Aggregate Amount Paid	$ 3,100,064
Regular and Special Cash Dividend \| Subsequent Event
Dividends Payable [Line Items]
Common Share Distribution Amount (in dollars per share)							$ 1.11
Aggregate Amount Paid							$ 22,940,474

LOAN RECEIVABLE HELD AT CARRYING VALUE (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Changes in Loans Receivable

The following table presents changes in loans receivable as of and for the six months ended June 30, 2024:


	Principal		Original Issue Discount		Carrying Value

Total loan receivable held at carrying value at December 31, 2023	$	2,041,744	$	(1,686)	$	2,040,058
Loan repayments	—		—		—
Total loan receivable held at carrying value at June 30, 2024	$	2,041,744	$	(1,686)	$	2,040,058

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($)		1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($)	Apr. 05, 2022	Jun. 30, 2024	Jan. 31, 2024	Jan. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jun. 13, 2023
Class of Stock [Line Items]
Preferred stock, authorized (in shares)		10,000			10,000		10,000		10,000
Preferred stock, par value (in usd per share)		$ 0.01			$ 0.01		$ 0.01		$ 0.01
Preferred stock, issued (in shares)		0			0		0		125
Preferred stock, outstanding (in shares)		0			0		0		125
Authorized repurchase amount										$ 20,000,000
Shares repurchased (in shares)					0		0		0
Balance (in shares)		2,168,952			2,168,952		2,168,952		2,168,952
Stock-based compensation					$ 369,343	$ 130,769	$ 912,565	$ 411,347
Granted (in shares)							0	0
Exercised (in shares)							0	0
Cost not yet recognized		$ 2,800,000			$ 2,800,000		$ 2,800,000
Cost not yet recognized, period for recognition							2 years 1 month 20 days
2020 Plan
Class of Stock [Line Items]
Shares of common stock outstanding (in shares)		2,536,289			2,536,289		2,536,289
Balance (in shares)		2,169,852			2,169,852		2,169,852
Share limit (in shares)		3,202,442			3,202,442		3,202,442
Restricted Stock
Class of Stock [Line Items]
Restricted stock, granted (in shares)					0	1,159	209,397	126,393
Fair value of shares vested					$ 14,500	$ 194,900	$ 738,600	$ 244,900
Granted (in dollars per share)						$ 12.94	$ 11.70	$ 15.55
Vested (in shares)						16,347	62,338	19,558
Vested (in dollars per share)						$ 20.39	$ 14.50	$ 19.60
Restricted Stock \| 2020 Plan
Class of Stock [Line Items]
Restricted stock, granted (in shares)			209,397	125,234
Vesting period (in years)			3 years	3 years
Non-vested (in shares)		366,437			366,437		366,437
Restricted Stock \| 2020 Plan \| James C. Fagan
Class of Stock [Line Items]
Restricted stock, granted (in shares)		1,159
Vesting period (in years)		1 year
Restricted Stock \| 2020 Plan \| Tranche one
Class of Stock [Line Items]
Vesting percentage			33.00%	33.00%
Restricted Stock \| 2020 Plan \| Tranche two
Class of Stock [Line Items]
Vesting percentage			33.00%	33.00%
Restricted Stock \| 2020 Plan \| Tranche three
Class of Stock [Line Items]
Vesting percentage			33.00%	33.00%
Shelf Registration
Class of Stock [Line Items]
Aggregate offering price	$ 1,000,000,000.0
Open Market Sale
Class of Stock [Line Items]
Aggregate offering price	$ 75,000,000.0
Commission percentage	3.00%
Shares sold in offering (in shares)					0		0		0
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, authorized (in shares)		10,000			10,000		10,000		10,000
Preferred stock, dividend rate (as a percent)							12.00%		12.00%
Preferred stock, issued (in shares)		0			0		0		125
Preferred stock, outstanding (in shares)		0			0		0		125
Preferred stock, liquidation preference (in dollars per share)		$ 1,000			$ 1,000		$ 1,000		$ 1,000
Preferred stock, redemption price (in dollars per share)		$ 1,000			$ 1,000		$ 1,000		$ 1,000
Preferred stock, redemption amount		$ 125,000			$ 125,000		$ 125,000		$ 125,000
Redemption of preferred shares (in shares)							125
Accrued and unpaid dividend							$ 0

DEBT (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Maturities of Long-Term Debt

Scheduled principal payments on the 2027 Senior Notes as of June 30, 2024 are as follows:


	2027 Senior Notes
Year
2024 (remaining)	$	—
2025	—
2026	—
2027	90,000,000
2028	—
Thereafter	—
Total principal	90,000,000
Deferred financing costs included in senior notes	(1,688,279)
Total due senior notes, net	$	88,311,721

Summary of Interest Expense

The following tables reflect a summary of interest expense incurred during the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30, 2024
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	1,293,750	$	26,250	$	1,320,000
Unused fee expense	—		—		—
Amortization of deferred financing costs	157,332		95,943		253,275
Total interest expense	$	1,451,082	$	122,193	$	1,573,275


	Three months ended June 30, 2023
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	1,293,750	$	—	$	1,293,750
Unused fee expense	—		38,749		38,749
Amortization of deferred financing costs	166,082		77,194		243,276
Total interest expense	$	1,459,832	$	115,943	$	1,575,775


	Six months ended June 30, 2024
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	2,587,500	$	82,387	$	2,669,887
Unused fee expense	—		—		—
Amortization of deferred financing costs	314,664		191,887		506,551
Total interest expense	$	2,902,164	$	274,274	$	3,176,438


	Six months ended June 30, 2023
	2027 Senior Notes		Revolving Credit Facility		Total Borrowings

Interest expense	$	2,702,500	$	26,667	$	2,729,167
Unused fee expense	—		74,582		74,582
Amortization of deferred financing costs	323,734		116,452		440,186
Total interest expense	$	3,026,234	$	217,701	$	3,243,935

LOANS HELD FOR INVESTMENT AT FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2024

LOANS HELD FOR INVESTMENT AT FAIR VALUE [Abstract]

Schedule of Loans Held at Fair Value

The following tables summarize the Company’s loans held at fair value as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
	Fair Value(1)		Carrying Value(2)		Outstanding Principal(2)		Weighted Average Remaining Life (Years)(3)

Senior term loan	$	34,661,390	$	49,618,382	$	49,729,397	0.0
Total loan held at fair value	$	34,661,390	$	49,618,382	$	49,729,397	0.0


	As of December 31, 2023
	Fair Value(1)		Carrying Value(2)		Outstanding Principal(2)		Weighted Average Remaining Life (Years)(4)

Senior term loans	$	61,720,705	$	71,644,003	$	71,883,402	0.4
Total loans held at fair value	$	61,720,705	$	71,644,003	$	71,883,402	0.4

(1)Refer to Note 14.

(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)As of June 30, 2024, the maturity date passed on the credit facility with Private Company A without repayment.

Schedule of Changes in Loans Held at Fair Value

The following table presents changes in loans held at fair value as of and for the six months ended June 30, 2024:


	Principal		Original Issue Discount		Unrealized Gains (Losses)		Fair Value

Total loans held at fair value at December 31, 2023	$	71,883,402	$	(239,399)	$	(9,923,298)	$	61,720,705

Change in unrealized gains (losses) on loans at fair value, net	—		—		(5,033,694)		(5,033,694)

Accretion of original issue discount	—		128,384		—		128,384
Loan repayments	(4,003,945)		—		—		(4,003,945)
Sale of loans	(19,284,846)		—		—		(19,284,846)
PIK interest	1,134,786		—		—		1,134,786
Total loans held at fair value at June 30, 2024	$	49,729,397	$	(111,015)	$	(14,956,992)	$	34,661,390

Schedule of Loans Held at Fair Value Portfolio

A more detailed listing of the Company’s loan held at fair value portfolio based on information available as of June 30, 2024 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, GA, MA, NM	C, D	$	34,661,390	$	49,618,382	$	49,729,397	15.8	%	(6)	5/8/2024	I/O


Total loan held at fair value			$	34,661,390	$	49,618,382	$	49,729,397

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

(2)Refer to Note 14.

(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.

FAIR VALUE

6 Months Ended

Jun. 30, 2024

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. Alternative valuation methodologies may be used as appropriate, and can include a market analysis, income analysis, or recovery analysis. 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 June 30, 2024 and December 31, 2023:


	Fair Value Measurement as of June 30, 2024
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	34,661,390	$	—	$	—	$	34,661,390
Total	$	34,661,390	$	—	$	—	$	34,661,390


	Fair Value Measurement as of December 31, 2023
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	61,720,705	$	—	$	—	$	61,720,705
Total	$	61,720,705	$	—	$	—	$	61,720,705

The following table presents changes in loans that use Level 3 inputs as of and for the six months ended June 30, 2024:


	Six months ended June 30, 2024
Total loans using Level 3 inputs at December 31, 2023	$	61,720,705

Change in unrealized gains (losses) on loans at fair value, net	(5,033,694)

Loan repayments	(4,003,945)
Sale of loans	(19,284,846)
Accretion of original issue discount	128,384
PIK interest	1,134,786
Total loans using Level 3 inputs at June 30, 2024	$	34,661,390

The change in unrealized losses included in the unaudited interim consolidated statements of operations attributable to loans held at fair value, categorized as Level 3, held as of June 30, 2024 is $(9,459,704).

The following tables summarize the significant unobservable inputs the Company used to value the loans categorized within Level 3 as of June 30, 2024 and December 31, 2023. 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 June 30, 2024

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loan

34,661,390

Recovery analysis

Recovery rate

66.50% - 72.90%

69.70%

Total investment

34,661,390

As of December 31, 2023

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

47,627,845

Recovery analysis

Recovery rate

86.10% - 92.40%

89.25%

Senior term loans

14,092,860

Market approach

Revenue multiple

0.50x - 0.70x

0.60x

Total investments

61,720,705

Changes in market yields, revenue multiples, and recovery rates 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, while a decrease in revenue multiples and recovery rates 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.

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 sheets, 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 unaudited interim consolidated balance sheets as of June 30, 2024:


	As of June 30, 2024
	Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	170,298,050	$	170,298,050
Loans held for investment at carrying value	$	273,580,334	$	250,955,783
Loan receivable held at carrying value	$	2,040,058	$	510,436
Financial liabilities:
Senior notes payable, net	$	88,311,721	$	81,045,000

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 fair value of the Company’s 2027 Senior Notes is estimated using observable inputs based on the last available bid price in the market at the end of the period, 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

DIVIDENDS AND DISTRIBUTIONS

6 Months Ended

Jun. 30, 2024

DIVIDENDS AND DISTRIBUTIONS [Abstract]

DIVIDENDS AND DISTRIBUTIONS

The following table summarizes the Company’s dividends declared during the six months ended June 30, 2024 and 2023:


	Record Date	Payment Date	Common Share Distribution Amount		Aggregate Amount Paid

Regular cash dividend	3/31/2023	4/14/2023	$	0.56	$	11,473,971
Regular cash dividend	6/30/2023	7/14/2023	0.48		9,819,695

2023 Period Subtotal			$	1.04	$	21,293,666
Regular cash dividend	3/31/2024	4/15/2024	$	0.48	$	9,920,205
Regular cash dividend	6/24/2024	7/15/2024	0.48		9,920,205
Special cash dividend	7/8/2024	7/15/2024	0.15		3,100,064

2024 Period Subtotal			$	1.11	$	22,940,474

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Earnings (Deficit)
Beginning balance at Dec. 31, 2022	$ 339,059,369	$ 1	$ 203,640	$ 348,817,914	$ (9,962,186)
Beginning balance (in shares) at Dec. 31, 2022			20,364,000
Ending balance at Mar. 31, 2023	337,879,330	1	$ 204,892	349,085,320	(11,410,883)
Ending balance (in shares) at Mar. 31, 2023			20,489,234
Beginning balance at Dec. 31, 2022	339,059,369	1	$ 203,640	348,817,914	(9,962,186)
Beginning balance (in shares) at Dec. 31, 2022			20,364,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)			93,697
Stock-based compensation	399,427		$ 937	398,490
Dividends declared on common shares	(21,293,666)				(21,293,666)
Dividends declared on preferred shares	(7,500)				(7,500)
Net income	22,160,607				22,160,607
Ending balance at Jun. 30, 2023	340,318,237	1	$ 204,577	349,216,404	(9,102,745)
Ending balance (in shares) at Jun. 30, 2023			20,457,697
Beginning balance at Mar. 31, 2023	337,879,330	1	$ 204,892	349,085,320	(11,410,883)
Beginning balance (in shares) at Mar. 31, 2023			20,489,234
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)			(31,537)
Stock-based compensation	130,769		$ (315)	131,084
Dividends declared on common shares	(9,819,695)				(9,819,695)
Dividends declared on preferred shares	(7,500)				(7,500)
Net income	12,135,333				12,135,333
Ending balance at Jun. 30, 2023	340,318,237	1	$ 204,577	349,216,404	(9,102,745)
Ending balance (in shares) at Jun. 30, 2023			20,457,697
Beginning balance at Dec. 31, 2023	$ 320,052,225	1	$ 204,577	349,805,890	(29,958,243)
Beginning balance (in shares) at Dec. 31, 2023	20,457,697		20,457,697
Ending balance at Mar. 31, 2024	$ 310,621,126	1	$ 206,671	350,347,018	(39,932,564)
Ending balance (in shares) at Mar. 31, 2024			20,667,094
Beginning balance at Dec. 31, 2023	$ 320,052,225	$ 1	$ 204,577	349,805,890	(29,958,243)
Beginning balance (in shares) at Dec. 31, 2023	20,457,697		20,457,697
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)			209,397
Stock-based compensation	$ 912,565		$ 2,094	910,471
Dividends declared on common shares	(22,940,474)				(22,940,474)
Dividends declared on preferred shares	(7,500)				(7,500)
Redemption of preferred shares (in shares)		(1)
Redemption of preferred shares	(125,000)			(124,999)
Net income	16,392,005				16,392,005
Ending balance at Jun. 30, 2024	$ 314,283,821	$ 0	$ 206,671	350,591,362	(36,514,212)
Ending balance (in shares) at Jun. 30, 2024	20,667,094		20,667,094
Beginning balance at Mar. 31, 2024	$ 310,621,126	$ 1	$ 206,671	350,347,018	(39,932,564)
Beginning balance (in shares) at Mar. 31, 2024			20,667,094
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)			0
Stock-based compensation	369,343		$ 0	369,343
Dividends declared on common shares	(13,020,269)				(13,020,269)
Dividends declared on preferred shares	(7,500)				(7,500)
Redemption of preferred shares (in shares)		(1)
Redemption of preferred shares	(125,000)			(124,999)
Net income	16,446,121				16,446,121
Ending balance at Jun. 30, 2024	$ 314,283,821	$ 0	$ 206,671	$ 350,591,362	$ (36,514,212)
Ending balance (in shares) at Jun. 30, 2024	20,667,094		20,667,094

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
EARNINGS PER SHARE (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share Reconciliation [Abstract]
Net income attributable to common shareholders	$ 16,446,121	$ 12,135,333	$ 16,392,005	$ 22,160,607
Dividends paid on preferred shares	(7,500)	(7,500)	(7,500)	(7,500)
Dividends paid on unvested restricted stock	(128,270)	(103,805)	(185,396)	(139,277)
Net (loss) income attributable to common shareholders, basic	16,310,351	12,024,028	16,199,109	22,013,830
Net (loss) income attributable to common shareholders, diluted	$ 16,310,351	$ 12,024,028	$ 16,199,109	$ 22,013,830
Divided by:
Basic weighted average shares of common stock outstanding (in shares)	20,400,004	20,317,341	20,396,940	20,310,606
Weighted average unvested restricted stock and dilutive stock options (in shares)	37,795	5,516	21,957	71,118
Diluted weighted average shares of common stock outstanding (in shares)	20,437,799	20,322,857	20,418,897	20,381,724
Basic weighted average earnings per common share (in dollars per share)	$ 0.80	$ 0.59	$ 0.79	$ 1.08
Diluted weighted average earnings per common share (in dollars per share)	$ 0.80	$ 0.59	$ 0.79	$ 1.08
Antidilutive stock options (in shares)	2,206,907	2,417,817	2,206,907	2,369,907

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Assets
Loans held for investment at cost	$ 49,618,382	$ 71,644,003
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)	0	125
Preferred stock, outstanding (in shares)	0	125
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	20,667,094	20,457,697
Common stock, outstanding (in shares)	20,667,094	20,457,697

SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Series A Preferred Stock

As of June 30, 2024 and December 31, 2023, the Company has authorized 10,000 preferred shares designated as 12.0% Series A Cumulative Non-Voting Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”). As of June 30, 2024 and December 31, 2023, there were zero and 125 shares of Series A Preferred Stock issued and outstanding, respectively.

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.

On June 30, 2024, the Company redeemed all 125 outstanding shares of its Series A Preferred Stock. The Series A Preferred Stock was redeemed at a price of $1,000 per share, plus all accrued and unpaid dividends thereon to and including the date fixed for redemption. As the shares were redeemed on June 30, 2024, there were no accrued and unpaid dividends.

Common Stock

During the three and six months ended June 30, 2024 and year ended December 31, 2023, the Company did not issue any shares of its common stock, other than restricted stock awards granted under the Stock Incentive Plan.

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 Citizens 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 six months ended June 30, 2024 and year ended December 31, 2023, the Company did not sell any shares of the Company’s common stock under the Sales Agreement.

As of June 30, 2024, the shares of common stock sold under the ATM Program are the only offerings that have been initiated under the Shelf Registration Statement.

Share Repurchase Program

On June 13, 2023, the Company's Board of Directors authorized a share repurchase program providing for the repurchase of up to $20.0 million of the Company's outstanding common stock (the “Repurchase Program”). The timing, price, and volume of repurchases will be based on the Company’s stock price, general market conditions, applicable legal requirements and other factors. The repurchase of the Company’s common stock may be made from time to time in the open market, in privately negotiated transactions or otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The Company expects to finance any share repurchases under the Repurchase Program using cash on hand, capacity available under our line of credit and cash flows from operations. The Repurchase Program may be discontinued, modified or suspended at any time. During the three and six months ended June 30, 2024 and year ended December 31, 2023, the Company did not repurchase any shares of its common stock pursuant to the Repurchase Program.

Stock Incentive Plan

The Company has established a stock 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.

In January 2024, the Company’s Board of Directors approved grants of restricted stock to the Company’s directors and officers, as well as employees of the Manager, and the Company granted an aggregate of 209,397 shares of restricted stock to certain of our directors, officers and other eligible persons. The restricted stock granted in January 2024 under the 2020 Plan contain vesting periods that vary from immediately vested to vesting over a three-year period, with approximately 33% vesting on each of the first, second and third anniversaries of the vesting commencement date. As of June 30, 2024, there were 2,536,289 shares of common stock granted under the 2020 Plan, underlying 2,169,852 options and 366,437 shares of restricted stock.

In January 2023, the Company’s Board of Directors approved grants of restricted stock to the Company’s directors and officers, as well as certain employees of the Manager, and the Company granted an aggregate of 125,234 shares of restricted stock to certain of our directors, officers and other eligible persons. The restricted stock granted in January 2023 under the 2020 Plan contain vesting periods that vary from immediately vested to vesting over a three-year period, with approximately 33% vesting on each of the first, second and third anniversaries of the vesting commencement date. In June 2023, the Company granted 1,159 shares of restricted stock to James C. Fagan in connection with his appointment to the Company’s Board of Directors, which vested upon the one-year anniversary of the grant date.

As of June 30, 2024, 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 3,202,442 shares, which is consistent with the Share Limit as of March 31, 2024. 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.

In connection with the Spin-Off, certain of the outstanding stock options of the Company, as well as the strike price for the stock options, will be adjusted. All adjustments are made with the intent to preserve the intrinsic value of each award immediately before and after the Spin-Off.



	As of June 30, 2024	As of December 31, 2023
Non-vested	161,879	206,304
Vested	2,212,753	2,168,328
Exercised	(5,511)	(5,511)
Forfeited	(200,169)	(200,169)
Balance	2,168,952	2,168,952

The Company uses the Black-Scholes option pricing model to value stock options in determining the stock-based compensation expense. The Company has elected to recognize forfeitures as they occur. Previously recognized compensation expense related to forfeitures are reversed in the period the nonvested awards are forfeited. 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 the 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 $0.4 million and $0.9 million for the three and six months ended June 30, 2024, respectively, and approximately $0.1 million and $0.4 million for the three and six months ended June 30, 2023, 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 as of and during the six months ended June 30, 2024:


	Number of options	Weighted-average exercise price		Weighted-average remaining contractual term	Aggregate intrinsic value
Outstanding as of December 31, 2023	2,168,952	$	17.74
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding as of June 30, 2024	2,168,952	$	17.74	3.77 years	$	—
Exercisable as of June 30, 2024	2,123,596	$	17.72	3.76 years	$	—

The Company did not grant any options during the six months ended June 30, 2024 and 2023. No options were exercised during the six months ended June 30, 2024 and 2023.



	As of June 30, 2024	As of December 31, 2023
Granted	400,371	190,974
Vested	(100,366)	(38,028)
Forfeited	(33,934)	(33,934)
Balance	266,071	119,012

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 as of and during the six months ended June 30, 2024:


	Number of shares of restricted stock	Weighted-average grant date fair value
Balance as of December 31, 2023	119,012	$	16.06
Granted	209,397	11.70
Vested	(62,338)	14.50
Forfeited	—	—
Balance as of June 30, 2024	266,071	$	13.00

The total fair value of shares vested during the three months ended June 30, 2024 was approximately $14.5 thousand. There were no shares of restricted stock granted during the three months ended June 30, 2024. During the three months ended June 30, 2023, 1,159 shares of restricted stock were granted with a weighted-average grant date fair value of $12.94. During the three months ended June 30, 2023, 16,347 shares of restricted stock vested with a weighted-average grant date fair value of $20.39. The total fair value of shares vested during the three months ended June 30, 2023 was approximately $194.9 thousand.

The total fair value of shares vested during the six months ended June 30, 2024 was approximately $738.6 thousand. During the six months ended June 30, 2023, 126,393 shares of restricted stock were granted with a weighted-average grant date fair value of $15.55. During the six months ended June 30, 2023, 19,558 shares of restricted stock vested with a weighted-average grant date fair value of $19.60. The total fair value of shares vested during the six months ended June 30, 2023 was approximately $244.9 thousand.

As of June 30, 2024, there was approximately $2.8 million of total unrecognized compensation cost related to non-vested restricted stock and stock option awards. That cost is expected to be recognized over a weighted-average period of 2.14 years.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

INTEREST RECEIVABLE

6 Months Ended

Jun. 30, 2024

Interest Receivable and Other Assets [Abstract]

INTEREST RECEIVABLE

The following table summarizes the interest receivable by the Company as of June 30, 2024 and December 31, 2023:



	As of June 30, 2024		As of December 31, 2023

Interest receivable	$	1,659,502	$	2,680,188
PIK receivable	34,570		1,009,974
Unused fees receivable	35,116		25,833
Total interest receivable	$	1,729,188	$	3,715,995

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Assets
Loans held for investment at fair value (cost of $49,618,382 and $71,644,003 at June 30, 2024 and December 31, 2023, respectively, net)	$ 34,661,390	$ 61,720,705
Loans held for investment at carrying value, net	273,580,334	301,265,398
Loan receivable held at carrying value, net	2,040,058	2,040,058
Current expected credit loss reserve	(25,009,024)	(26,309,450)
Loans held for investment at carrying value and loan receivable held at carrying value, net of current expected credit loss reserve	250,611,368	276,996,006
Cash and cash equivalents	170,298,050	121,626,453
Accounts receivable	0	1,837,450
Interest receivable	1,729,188	3,715,995
Prepaid expenses and other assets	691,787	688,446
Total assets	457,991,783	466,585,055
Liabilities
Accrued interest	888,750	894,000
Due to affiliate	24,490	16,437
Dividends payable	13,020,269	9,819,695
Current expected credit loss reserve	157,333	115,473
Accrued management and incentive fees	3,985,028	3,471,726
Accrued direct administrative expenses	884,310	1,486,256
Accounts payable and other liabilities	1,436,061	714,685
Senior notes payable, net	88,311,721	88,014,558
Line of credit payable, net	35,000,000	42,000,000
Total liabilities	143,707,962	146,532,830
Commitments and contingencies (Note 10)
Shareholders’ equity
Preferred stock, par value $0.01 per share, 10,000 shares authorized at June 30, 2024 and December 31, 2023 and 0 and 125 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	0	1
Common stock, par value $0.01 per share, 50,000,000 shares authorized at June 30, 2024 and December 31, 2023 and 20,667,094 and 20,457,697 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	206,671	204,577
Additional paid-in capital	350,591,362	349,805,890
Accumulated (deficit) earnings	(36,514,212)	(29,958,243)
Total shareholders’ equity	314,283,821	320,052,225
Total liabilities and shareholders’ equity	$ 457,991,783	$ 466,585,055

INCOME TAXES - Schedule of Income Tax Provision (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Current	$ 285,975	$ 167,637	$ 444,335	$ 342,469
Deferred	0	0	0	0
Excise tax	0	0	0	270
Total income tax expense, including excise tax	285,975	167,637	444,335	342,739
Current federal tax expense	183,000.0	131,500	288,300	263,000.0
Current state and local tax expense	$ 103,000.0	$ 36,100	$ 156,000.0	$ 79,500

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Subparagraph (a)
-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

LOAN RECEIVABLE HELD AT CARRYING VALUE - Narrative (Details)	Jun. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Number of portfolio loans \| loan	1	1
Loans receivable at carrying value aggregate commitments	$ 4,000,000.0	$ 4,000,000.0
Loans receivable at principal	2,041,744	2,041,744
Loan receivable held at carrying value, net	2,040,058	$ 2,040,058
Non accrual status
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable at principal	$ 2,000,000.0
Number of loans \| loan	1
Loan receivable held at carrying value, net	$ 2,000,000.0

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

+ Details

INTEREST RESERVE - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
INTEREST RESERVE - Narrative (Details)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($)	Dec. 31, 2023 loan
INTEREST RESERVE [Abstract]
Number of loans included in loan funded interest reserve (in loans) \| loan			0		0
Interest reserve disbursed \| $	$ 0	$ 559,793	$ 0	$ 3,596,468

RELATED PARTY TRANSACTIONS - Narrative (Details)	3 Months Ended		6 Months Ended
RELATED PARTY TRANSACTIONS - Narrative (Details)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Related Party Transaction [Line Items]
Incentive fees earned	$ 2,900,000	$ 2,400,000	$ 5,300,000	$ 5,200,000
Managers \| Leonard Tannenbaum
Related Party Transaction [Line Items]
Membership interest			75.00%
Managers \| Robyn Tannenbaum
Related Party Transaction [Line Items]
Membership interest			10.00%
Managers \| Mr. Bernard Berman
Related Party Transaction [Line Items]
Membership interest			3.00%
Managers \| Daniel Neville
Related Party Transaction [Line Items]
Membership interest			1.60%
Related Party
Related Party Transaction [Line Items]
Percentage of base management fees	0.375%		0.375%
Percentage of aggregate amount of any outside fees	50.00%		50.00%
Amounts payable	$ 4,900,000		$ 4,900,000		$ 5,000,000.0
Affiliated Entity
Related Party Transaction [Line Items]
Due to affiliate	$ 24,500		$ 24,500		$ 16,400
Number of co-invested loans held \| loan			4

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Narrative (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan	Dec. 01, 2023 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Number of loans held for investments in portfolio (in loans) \| loan	12	9
Loans held for investments aggregate commitments	$ 311,100,000	$ 333,100,000
Loans held at carrying value, outstanding principal	283,678,065	$ 314,376,929
Loans held at carrying value, outstanding principal fundings	107,200,000
Loan repayments, carrying value	49,100,000
Sale of loans	$ 90,000,000
Percentage of loans held at carrying value with floating interest rates	44.00%	84.00%
Interest rate floor	3.70%
Quoted interest rate	0.053
Loan receivable held at carrying value, net	$ 2,040,058	$ 2,040,058
Sub. of Private Co. G
Loans and Leases Receivable Disclosure [Line Items]
Loans held at carrying value, outstanding principal			$ 79,200,000
Loan receivable held at carrying value, net			77,800,000
Nonaccrual, interest income	2,800,000
Private Co. K
Loans and Leases Receivable Disclosure [Line Items]
Loans held at carrying value, outstanding principal			12,200,000
Loan receivable held at carrying value, net			$ 11,500,000
Nonaccrual, interest income	500,000
Outstanding principal	$ 1,300,000
Non-Accrual
Loans and Leases Receivable Disclosure [Line Items]
Number of loans on non accrual status, carrying value \| loan	2

LOANS HELD FOR INVESTMENT AT CARRYING VALUE

6 Months Ended

Jun. 30, 2024

LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]

LOANS HELD FOR INVESTMENT AT CARRYING VALUE

As of June 30, 2024 and December 31, 2023, the Company’s portfolio included twelve and nine loans held at carrying value, respectively. The aggregate originated commitment under these loans was approximately $311.1 million and $333.1 million, respectively, and outstanding principal was approximately $283.7 million and $314.4 million, respectively, as of June 30, 2024 and December 31, 2023. During the six months ended June 30, 2024, the Company funded approximately $107.2 million of new loans and additional principal, had approximately $49.1 million of principal repayments of loans held at carrying value and sold $90.0 million in the aggregate of the Company’s investments in Subsidiary of Public Company H and Subsidiary of Public Company M. As of June 30, 2024 and December 31, 2023, approximately 44% and 84%, respectively, of the Company’s loans held at carrying value had floating interest rates. As of June 30, 2024, these floating benchmark rates included one-month Secured Overnight Financing Rate (“SOFR”) subject to a weighted average floor of 3.7% and quoted at 5.3%.

The following tables summarize the Company’s loans held at carrying value as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
	Outstanding Principal(1)		Original Issue Discount		Carrying Value(1)		Weighted Average Remaining Life (Years)(2)

Senior term loans(3)	$	262,048,014	$	(9,851,079)	$	252,196,935	2.1
Subordinate debt	21,630,051		(246,652)		21,383,399		2.9
Total loans held at carrying value	$	283,678,065	$	(10,097,731)	$	273,580,334	2.1


	As of December 31, 2023
	Outstanding Principal(1)		Original Issue Discount		Carrying Value(1)		Weighted Average Remaining Life (Years)(2)

Senior term loans	$	314,376,929	$	(13,111,531)	$	301,265,398	2.2
Total loans held at carrying value	$	314,376,929	$	(13,111,531)	$	301,265,398	2.2

(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 each respective group of loans as of June 30, 2024 and December 31, 2023.

The following table presents changes in loans held at carrying value as of and for the six months ended June 30, 2024:


	Principal		Original Issue Discount		Carrying Value

Total loans held at carrying value at December 31, 2023	$	314,376,929	$	(13,111,531)	$	301,265,398
New fundings	107,183,159		(2,423,357)		104,759,802
Accretion of original issue discount	—		5,185,495		5,185,495
Loan repayments	(46,879,654)		—		(46,879,654)
Sale of loans	(90,000,000)		251,662		(89,748,338)
PIK interest	1,217,065		—		1,217,065
Loan amortization payments	(2,219,434)		—		(2,219,434)
Total loans held at carrying value at June 30, 2024	$	283,678,065	$	(10,097,731)	$	273,580,334

As of June 30, 2024, the Company had two loans held at carrying value on nonaccrual status.

The Company placed Subsidiary of Private Company G on nonaccrual status effective December 1, 2023, with an outstanding principal amount of approximately $79.2 million and an amortized cost of approximately $77.8 million. Subsidiary of Private Company G was previously placed on nonaccrual status during various periods in 2023. The Company will recognize income related to loan activity only upon receipt of cash. During the six months ended June 30, 2024, the Company recognized interest income of approximately $2.8 million related to this loan which was received in cash.

The Company placed Private Company K on nonaccrual status effective December 1, 2023, with an outstanding principal amount of approximately $12.2 million and an amortized cost of approximately $11.5 million. The Company will recognize income related to loan activity only upon receipt of cash. During the six months ended June 30, 2024, the Company received a $1.3 million payment applied to the outstanding principal balance and recognized interest income of approximately $0.5 million related to this loan received in cash.

A more detailed listing of the Company’s loans held at carrying value portfolio based on information available as of June 30, 2024 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)


Sub. of Private Co. G	NJ, PA	C, D	$	79,215,888	$	(1,444,847)	$	77,771,041	12.5	%	(5)	5/1/2026	I/O
Private Co. K	MA	C, D	12,195,762		(682,619)		11,513,143		19.3	%	(6)	5/3/2027	P/I
Private Co. J	MO	C, D	20,543,967		(229,595)		20,314,372		19.3	%	(7)	9/1/2025	P/I

Private Co. L	OH	C, D	37,114,073		(866,681)		36,247,392		13.7	%	(8)	5/1/2026	P/I
Sub. of Public Co. M	IL, MA, MD, MI, NJ, OH, PA	C, D	12,822,000		(1,252,966)		11,569,034		9.5	%	(9)	8/27/2025	I/O
Private Co. M	AZ	D	31,399,498		(3,325,329)		28,074,169		9.0	%	(10)	7/31/2026	P/I
Private Co. N - Real Estate	FL	C, D	17,491,921		(656,499)		16,835,422		13.3	%	(11)	4/1/2028	P/I
Private Co. N - Non-Real Estate	FL	C, D	17,200,000		(645,000)		16,555,000		13.3	%	(12)	4/1/2028	P/I
Private Co. O	AZ, MD, MO, NJ, NV, NY, OH, OR, Canada	C	2,728,647		(293,750)		2,434,897		13.8	%	(13)	6/1/2028	P/I
Private Co. P	MI	C, D	15,126,433		(453,793)		14,672,640		13.0	%	(14)	7/1/2027	P/I
CRE Private Co. A	TX	Mixed-use	16,209,825		—		16,209,825		20.0	%	(15)	11/30/2024	I/O
CRE Private Co. B	FL	Residential	21,630,051		(246,652)		21,383,399		13.0	%	(16)	5/12/2027	I/O
Total loans held at carrying value			$	283,678,065	$	(10,097,731)	$	273,580,334

(1)For cannabis operators, 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.

(7)Base interest rate of 12.0% plus SOFR (SOFR floor of 1.0%) and PIK interest rate of 2.0%.

(8)Base interest rate of 8.4% plus SOFR (SOFR floor of 5.0%).

(9)Base interest rate of 9.5%.

(10)Base interest rate of 9.0%. Quarterly cash interest is paid in kind from closing to February 1, 2024 and then payable in cash thereafter.

(11)Base interest rate of 8.0% plus SOFR (SOFR floor of 4.5%).

(12)Base interest rate of 8.0% plus SOFR (SOFR floor of 4.5%).

(13)Base interest rate of 8.5% plus SOFR (SOFR floor of 5.0%).

(14)Base interest rate of 13.0%.

(16)Base interest rate of 13.0%.

ORGANIZATION	6 Months Ended
ORGANIZATION	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION AFC Gamma, Inc. (the “Company” or “AFCG”) is an institutional lender that was founded in July 2020 by a veteran team of investment professionals. The Company primarily originates, structures, underwrites, invests in and manages senior secured mortgage loans and other types of loans and debt securities, with a specialization in loans to 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 are consolidated within the Company’s consolidated financial statements. Sunrise Realty Trust, Inc. (“SUNS”) (f/k/a CRE South LLC), the Company’s wholly-owned subsidiary as of June 30, 2024, was formed on August 28, 2023 and converted from a Delaware limited liability company to a Maryland corporation in February 2024. The financial statements of SUNS are consolidated within the Company’s consolidated financial statements in this Quarterly Report on Form 10-Q. On February 22, 2024, the Company announced that the Board unanimously approved a plan to spin-off (the “Spin-Off”) the Company’s wholly-owned subsidiary, SUNS, which held the Company’s commercial real estate (“CRE”) loan portfolio, into an independent, publicly traded REIT, Sunrise Realty Trust, Inc. (“SUNS”). The Spin-Off was effected by the transfer of the Company’s CRE portfolio, from the Company to SUNS and the distribution of all of the outstanding shares of SUNS common stock to the Company’s shareholders of record as of the close of business on July 8, 2024 (the “Record Date”). The Company’s shareholders of record as of the Record Date received one share of SUNS common stock for every three shares of the Company’s common stock held as of the Record Date. The Spin-Off was completed July 9, 2024 (the “Distribution Date”). On the Distribution Date, SUNS became an independent, publicly-traded company, trading on the Nasdaq Capital Market under the symbol “SUNS”. The Company retained no ownership interest in SUNS following the Spin-Off. Beginning in the third quarter of fiscal year 2024, the historical financial results of the SUNS business for periods prior to the Distribution Date will be reflected in the Company’s consolidated financial statements as discontinued operations. In connection with the Spin-Off, the Company entered into several agreements with SUNS that govern the relationship between the Company and SUNS following the Spin-Off, including the Separation and Distribution Agreement and the Tax Matters Agreement. These agreements provide for the allocation between the Company and SUNS of the assets, liabilities and obligations (including, among others, investments, property and tax-related assets and liabilities) of the Company and its subsidiaries attributable to periods prior to, at and after the Spin-Off. Following the completion of the Spin-Off, the Company amended its investment guidelines such that the Company’s investments will primarily be in first and second lien loans, typically secured by mortgages and other security interests, to cannabis operators in states that have legalized medical and/or adult use cannabis. The Company operates in one operating segment. Prior to the Spin-Off, the Company was primarily focused on financing senior secured loans and other types of loans to (i) senior secured loans to cannabis industry operators in states where medical and/or adult-use cannabis is legal and (ii) secured loans to commercial real estate owners, operators and related businesses. Following the Spin-Off, the Company is solely focused on senior secured loans 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 (where applicable) 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”). 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.

FAIR VALUE - Book Value and Fair Value of the Financial Instruments (Details)	Jun. 30, 2024 USD ($)
Carrying Value
Financial assets:
Cash and cash equivalents	$ 170,298,050
Loans held for investment at carrying value	273,580,334
Loan receivable held at carrying value	2,040,058
Financial liabilities:
Senior notes payable, net	88,311,721
Fair Value
Financial assets:
Cash and cash equivalents	170,298,050
Loans held for investment at carrying value	250,955,783
Loan receivable held at carrying value	510,436
Financial liabilities:
Senior notes payable, net	$ 81,045,000

- Definition

Fair value portion of debt instrument payable, including, but not limited to, notes payable and loans payable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-10

+ Details

INCOME TAX

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

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.

The income tax provision for the Company was approximately $0.3 million and $0.4 million for the three and six months ended June 30, 2024, respectively. The income tax provision for the Company was approximately $0.2 million and $0.3 million for the three and six months ended June 30, 2023, respectively. The income tax expense for the three and six months ended June 30, 2024 and 2023 primarily related to activities of the Company’s taxable REIT subsidiary.

The income tax provision for the Company and TRS1 consisted of the following for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Current(1)	$	285,975	$	167,637	$	444,335	$	342,469
Deferred	—		—		—		—
Excise tax	—		—		—		270
Total income tax expense, including excise tax	$	285,975	$	167,637	$	444,335	$	342,739

For the three and six months ended June 30, 2024 and 2023, 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 tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Changes in Loans Held at Fair Value (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Principal
Total loans held at fair value, principal, beginning balance	$ 71,883,402
Loan repayments	(4,003,945)
Sale of loans	(19,284,846)
PIK interest	1,134,786
Total loans held at fair value, principal, ending balance	49,729,397
Original Issue Discount
Total loans held at fair value, original issue discount, beginning balance	(239,399)
Accretion of original issue discount	128,384
Total loans held at fair value, original issue discount, ending balance	(111,015)
Unrealized Gains (Losses)
Total loans held at fair value, unrealized gains (losses), beginning balance	(9,923,298)
Change in unrealized gains (losses) on loans at fair value, net	(5,033,694)
Total loans held at fair value, unrealized gains (losses), ending balance	(14,956,992)
Fair Value
Total loans held at fair value, fair value, beginning balance	61,720,705
Change in unrealized gains (losses) on loans at fair value, net	(5,033,694)
Accretion of original issue discount	128,384
Loan repayments	(4,003,945)
Sale of loans	(19,284,846)
PIK interest, fair value	1,134,786
Total loans held at fair value, fair value, ending balance	$ 34,661,390

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Loans Held at Carrying Value (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Outstanding Principal	$ 283,678,065	$ 314,376,929
Original Issue Discount	(10,097,731)	(13,111,531)
Carrying Value	$ 273,580,334	$ 301,265,398
Weighted Average Remaining Life (Years)	2 years 1 month 6 days	2 years 2 months 12 days
Senior term loan
Loans and Leases Receivable Disclosure [Line Items]
Outstanding Principal	$ 262,048,014	$ 314,376,929
Original Issue Discount	(9,851,079)	(13,111,531)
Carrying Value	$ 252,196,935	$ 301,265,398
Weighted Average Remaining Life (Years)	2 years 1 month 6 days	2 years 2 months 12 days
Subordinate debt
Loans and Leases Receivable Disclosure [Line Items]
Outstanding Principal	$ 21,630,051
Original Issue Discount	(246,652)
Carrying Value	$ 21,383,399
Weighted Average Remaining Life (Years)	2 years 10 months 24 days

FAIR VALUE - Fair Value, Assets measured on Recurring and Nonrecurring Basis (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held at fair value	$ 34,661,390	$ 61,720,705
Total	34,661,390	61,720,705
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	34,661,390	61,720,705
Total	$ 34,661,390	$ 61,720,705

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared on common shares (in dollars per share)	$ 0.63	$ 0.48	$ 1.11	$ 1.04
Dividends declared on preferred shares (in dollars per share)	$ 60	$ 60	$ 60	$ 60

INTEREST RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2024

Interest Receivable and Other Assets [Abstract]

Summary of Interest Receivable

The following table summarizes the interest receivable by the Company as of June 30, 2024 and December 31, 2023:



	As of June 30, 2024		As of December 31, 2023

Interest receivable	$	1,659,502	$	2,680,188
PIK receivable	34,570		1,009,974
Unused fees receivable	35,116		25,833
Total interest receivable	$	1,729,188	$	3,715,995

COMMITMENTS AND CONTINGENCIES - Commitments to Fund Investments (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Total original loan commitments	$ 392,900,838	$ 431,239,913
Less: drawn commitments	(375,102,310)	(421,239,913)
Total undrawn commitments	$ 17,798,528	$ 10,000,000

DEBT - Narrative (Details) - USD ($)			3 Months Ended		6 Months Ended
DEBT - Narrative (Details) - USD ($)	Apr. 29, 2022	Nov. 03, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Line of Credit Facility [Line Items]
Increase limit	$ 100,000,000.0
Line of credit payable, net			$ 35,000,000		$ 35,000,000		$ 42,000,000
Gain on extinguishment of debt			0	$ 0	0	$ 1,986,381
2027 Senior Notes
Line of Credit Facility [Line Items]
Total principal			88,311,721		88,311,721
2027 Senior Notes \| 2027 Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, stated percentage		5.75%
Debt instrument, aggregate principal		$ 100,000,000
Net proceeds from offering		$ 97,000,000.0
Redemption price percentage		100.00%				77.40%
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%
Repurchased principal amount				$ 10,000,000.0		$ 10,000,000.0
Gain on extinguishment of debt						$ 2,000,000.0
Total principal			90,000,000.0		90,000,000.0
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Revolving credit loan commitment	$ 60,000,000.0
Basis spread on variable interest rate	0.50%
Debt instrument, stated percentage	4.50%
Unamortized commitment fee	$ 500,000
Unused line fee percentage	0.25%
Line of credit payable, net			35,000,000.0		35,000,000.0		42,000,000.0
Line of credit, available to borrow			$ 25,000,000.0		$ 25,000,000.0		$ 18,000,000.0
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%

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2024

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 six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Net income attributable to common shareholders	$	16,446,121	$	12,135,333	$	16,392,005	$	22,160,607
Dividends paid on preferred shares	(7,500)		(7,500)		(7,500)		(7,500)
Dividends paid on unvested restricted stock	(128,270)		(103,805)		(185,396)		(139,277)
Net income attributable to common shareholders	16,310,351		12,024,028		16,199,109		22,013,830
Divided by:
Basic weighted average shares of common stock outstanding	20,400,004		20,317,341		20,396,940		20,310,606
Weighted average unvested restricted stock and dilutive stock options	37,795		5,516		21,957		71,118
Diluted weighted average shares of common stock outstanding	20,437,799		20,322,857		20,418,897		20,381,724
Basic weighted average earnings per common share	$	0.80	$	0.59	$	0.79	$	1.08
Diluted weighted average earnings per common share	$	0.80	$	0.59	$	0.79	$	1.08

Diluted EPS was computed using the treasury stock method for stock options and restricted stock. Diluted weighted average earnings per common share excluded 2,206,907 and 2,206,907 weighted average unvested restricted stock and stock options due to anti-dilutive effect for the three and six months ended June 30, 2024, respectively, and 2,417,817 and 2,369,907 for the three and six months ended June 30, 2023, respectively.

INTEREST RESERVE - Changes in Interest Reserve (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest Reserve [Roll Forward]
Beginning reserves	$ 0	$ 1,690,334	$ 0	$ 3,200,944
New reserves	0	0	0	1,526,065
Reserves disbursed	0	(559,793)	0	(3,596,468)
Ending reserves	$ 0	$ 1,130,541	$ 0	$ 1,130,541

FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following tables present fair value measurements of loans held at fair value as of June 30, 2024 and December 31, 2023:


	Fair Value Measurement as of June 30, 2024
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	34,661,390	$	—	$	—	$	34,661,390
Total	$	34,661,390	$	—	$	—	$	34,661,390


	Fair Value Measurement as of December 31, 2023
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	61,720,705	$	—	$	—	$	61,720,705
Total	$	61,720,705	$	—	$	—	$	61,720,705

Schedule of 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 six months ended June 30, 2024:


	Six months ended June 30, 2024
Total loans using Level 3 inputs at December 31, 2023	$	61,720,705

Change in unrealized gains (losses) on loans at fair value, net	(5,033,694)

Loan repayments	(4,003,945)
Sale of loans	(19,284,846)
Accretion of original issue discount	128,384
PIK interest	1,134,786
Total loans using Level 3 inputs at June 30, 2024	$	34,661,390

Schedule of Fair Value Measurement Inputs and Valuation Techniques

As of June 30, 2024

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loan

34,661,390

Recovery analysis

Recovery rate

66.50% - 72.90%

69.70%

Total investment

34,661,390

As of December 31, 2023

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

47,627,845

Recovery analysis

Recovery rate

86.10% - 92.40%

89.25%

Senior term loans

14,092,860

Market approach

Revenue multiple

0.50x - 0.70x

0.60x

Total investments

61,720,705

Schedule of Book Value and Fair Value of the Financial Instruments


	As of June 30, 2024
	Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	170,298,050	$	170,298,050
Loans held for investment at carrying value	$	273,580,334	$	250,955,783
Loan receivable held at carrying value	$	2,040,058	$	510,436
Financial liabilities:
Senior notes payable, net	$	88,311,721	$	81,045,000

COMMITMENTS AND CONTINGENCIES - Narrative (Details)		6 Months Ended
COMMITMENTS AND CONTINGENCIES - Narrative (Details)	Mar. 17, 2023 tranche	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Termination, period to receive base salary	12 months
Termination, percentage of COBRA premiums paid	100.00%
Termination, period of COBRA premiums paid	12 months
Termination, accelerated vesting of equity awards, number of tranches \| tranche	1
Termination, extension of exercise period for outstanding options	1 year
Termination benefits \| $		$ 0	$ 700,000

SHAREHOLDERS' EQUITY - Schedule of Nonvested Share Activity (Details) - Restricted Stock - shares	Jun. 30, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	400,371	190,974
Vested (in shares)	(100,366)	(38,028)
Forfeited (in shares)	(33,934)	(33,934)
Balance (in shares)	266,071	119,012

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) 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 six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Net income attributable to common shareholders	$	16,446,121	$	12,135,333	$	16,392,005	$	22,160,607
Dividends paid on preferred shares	(7,500)		(7,500)		(7,500)		(7,500)
Dividends paid on unvested restricted stock	(128,270)		(103,805)		(185,396)		(139,277)
Net income attributable to common shareholders	16,310,351		12,024,028		16,199,109		22,013,830
Divided by:
Basic weighted average shares of common stock outstanding	20,400,004		20,317,341		20,396,940		20,310,606
Weighted average unvested restricted stock and dilutive stock options	37,795		5,516		21,957		71,118
Diluted weighted average shares of common stock outstanding	20,437,799		20,322,857		20,418,897		20,381,724
Basic weighted average earnings per common share	$	0.80	$	0.59	$	0.79	$	1.08
Diluted weighted average earnings per common share	$	0.80	$	0.59	$	0.79	$	1.08

INCOME TAX - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
INCOME TAX - Narrative (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income tax expense	$ 285,975	$ 167,637	$ 444,335	$ 342,739
Tax expense for US federal tax	0	$ 0	$ 0	$ 0
Exercise tax as a percentage of undistributed ordinary income and net capital gains			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 measurement Inputs and Valuation Techniques (Details) - Level 3	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value [Abstract]
Loans held for investment, fair value	$ 34,661,390	$ 61,720,705
Recovery analysis
Fair Value [Abstract]
Loans held for investment, fair value	$ 34,661,390	$ 47,627,845
Estimated Range and Weighted Average [Abstract]
Investment, Type [Extensible Enumeration]	Senior term loan	Senior term loan
Recovery analysis \| Market Yield \| Minimum
Estimated Range and Weighted Average [Abstract]
Unobservable Input	0.6650	0.8610
Recovery analysis \| Market Yield \| Maximum
Estimated Range and Weighted Average [Abstract]
Unobservable Input	0.7290	0.9240
Recovery analysis \| Market Yield \| Weighted Average
Estimated Range and Weighted Average [Abstract]
Unobservable Input	0.6970	0.8925
Market approach
Fair Value [Abstract]
Loans held for investment, fair value		$ 14,092,860
Estimated Range and Weighted Average [Abstract]
Investment, Type [Extensible Enumeration]		Senior term loan
Market approach \| Minimum
Estimated Range and Weighted Average [Abstract]
Unobservable Input		0.5
Market approach \| Maximum
Estimated Range and Weighted Average [Abstract]
Unobservable Input		0.7
Market approach \| Weighted Average
Estimated Range and Weighted Average [Abstract]
Unobservable Input		0.6

CURRENT EXPECTED CREDIT LOSSES - Financing Receivable, Allowance for Credit Loss (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			$ 26,309,450
(Decrease) increase in provision for current expected credit losses	$ (6,190,240)	$ (1,606,187)	(1,258,566)	$ (903,761)
Ending balance	25,009,024		25,009,024
CECL Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	31,356,597		26,424,923
(Decrease) increase in provision for current expected credit losses	(6,190,240)		(1,258,566)
Write-offs	0		0
Recoveries	0		0
Ending balance	25,166,357		25,166,357
Outstanding \| CECL Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	31,347,462		26,309,450
(Decrease) increase in provision for current expected credit losses	(6,338,438)		(1,300,426)
Write-offs	0		0
Recoveries	0		0
Ending balance	25,009,024		25,009,024
Unfunded \| CECL Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	9,135		115,473
(Decrease) increase in provision for current expected credit losses	148,198		41,860
Write-offs	0		0
Recoveries	0		0
Ending balance	$ 157,333		$ 157,333

- Definition

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

+ References + Details

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commitments to Fund Various Investments

As of June 30, 2024 and December 31, 2023, the Company had the following commitments to fund various investments:



	As of June 30, 2024		As of December 31, 2023

Total original loan commitments	$	392,900,838	$	431,239,913
Less: drawn commitments	(375,102,310)		(421,239,913)
Total undrawn commitments	$	17,798,528	$	10,000,000

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Loans Held at Fair Value Portfolio (Details) - USD ($)	1 Months Ended	6 Months Ended
	Oct. 31, 2023	Jun. 30, 2024	Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Fair Value		$ 34,661,390	$ 61,720,705
Carrying Value		49,618,382	71,644,003
Outstanding principal		$ 49,729,397	$ 71,883,402
Private Co. A \| Multi State
Loans and Leases Receivable Disclosure [Line Items]
Base interest rate		13.00%
PIK interest rate		2.80%
Additional PIK interest rate	5.00%
Private Co. A \| Multi State \| C, D
Loans and Leases Receivable Disclosure [Line Items]
Fair Value		$ 34,661,390
Carrying Value		49,618,382
Outstanding principal		$ 49,729,397
Interest Rate		15.80%