0000950170-24-053919 | 10-Q | XBRL Viewer | Chicago Atlantic Real Estate Finance INC

^[1]

$ 401,257,040

New funding in loan principal

^[2],[3]

375,844,314

$ 353,640,610

$ 22,400,000

Floating rate loans percentage

76.60%

80.50%

Loan carrying value

$ 287,700,000

$ 284,500,000

Portfolio fixed rate

23.40%

19.50%

Fixed rate loans

$ 88,100,000

$ 69,100,000

Loans

Loans Held For Investment, Net (Details) [Line Items]

$ 926,852

1,004,140

Maximum [Member]

Floating rate loans percentage

65.70%

Minimum [Member]

Loans Held For Investment, Net (Details) [Line Items]

Floating rate loans percentage

34.30%

Prime Rate [Member]

Loans Held For Investment, Net (Details) [Line Items]

Loans Held For Investment, Net (Details) [Line Items]

3.25%

Prime Rate One [Member]

Loans Held For Investment, Net (Details) [Line Items]

4.00%

Prime Rate Two [Member]

Prime Rate Three [Member]

4.75%

Loans Held For Investment, Net (Details) [Line Items]

Loans Held For Investment, Net (Details) [Line Items]

5.50%

Prime Rate Four [Member]

Loans Held For Investment, Net (Details) [Line Items]

6.25%

Prime Rate Five [Member]

Loans Held For Investment, Net (Details) [Line Items]

7.00%

Prime Rate Six [Member]

Prime Rate Seven [Member]

7.50%

Loans Held For Investment, Net (Details) [Line Items]

Prime Rate Eight [Member]

8.00%

Loans Held For Investment, Net (Details) [Line Items]

Loans Held For Investment, Net (Details) [Line Items]

8.25%

Prime Rate Nine [Member]

Loans Held For Investment, Net (Details) [Line Items]

8.50%

Prime Rate Ten [Member]

Subsequent Event [Member]

5.85%

Loans Held For Investment, Net (Details) [Line Items]

$ 6,000,000

Outstanding Principal [Member]

May 31, 2024

Loans Held For Investment, Net (Details) [Line Items]

$ 401,300,000

378,800,000

377.6

351.4

Non-Accrual Loans [Member]

16,500,000

16,400,000

Loans Held For Investment, Net (Details) [Line Items]

Credit losses

1,300,000

Loan Three [Member]

Loans Held For Investment, Net (Details) [Line Items]

Loan Three [Member] | Maximum [Member]

$ 15,900,000

Loans Held For Investment, Net (Details) [Line Items]

Loans Held For Investment, Net (Details) [Line Items]

13.625%

Loan Nine [Member]

Reserve for current expected credit losses

$ 1,300,000

1,500,000

Loans Six [Member]

Loans Held For Investment, Net (Details) [Line Items]

Loan Three - Second Commitment [Member]

Apr. 15, 2024

Loans Held For Investment, Net (Details) [Line Items]

Loan Three - Second Commitment [Member] | Maximum [Member]

$ 4,200,000

Loans Held For Investment, Net (Details) [Line Items]

Loan Three - Second Commitment [Member] | Minimum [Member]

15.00%

Loans Held For Investment, Net (Details) [Line Items]

2.75%

Loans Held For Investment, Net (Details) [Line Items]

2.00%

Michigan One [Member]

^[1]

$ 6,000,000

Michigan One [Member] | Outstanding Principal [Member]

^[4]

Apr. 15, 2024

Loans Held For Investment, Net (Details) [Line Items]

$ 4,300,000

[1]	Total Commitment excludes future amounts to be advanced at sole discretion of the lender.
[2]	Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.
[3]	Loan #9 placed on non-accrual status is included in risk rating category “4” and has a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024 and $1.5 million as of December 31, 2023.
[4]	Certain loans are subject to contractual extension options and may be subject to performance based on other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein and certain borrowers may have the right to prepay with or without a contractual prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.

Income Tax

3 Months Ended

Mar. 31, 2024

Income Tax [Abstract]

INCOME TAX

11. INCOME TAX

To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute annually to our stockholders at least 90% of our REIT taxable income prior to the deduction for dividends paid. To the extent that we distribute less than 100% of our REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), we will pay tax at regular corporate rates on that undistributed portion. Furthermore, if we distribute less than the sum of 1) 85% of our ordinary income for the calendar year, 2) 95% of our capital gain net income for the calendar year, and 3) any undistributed shortfall from our prior calendar year (the “Required Distribution”) to our stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then we are required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if we elect to retain any of our net capital gain for any tax year, we must notify our stockholders and pay tax at regular corporate rates on the retained net capital gain. Our stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that our estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, we will accrue excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. Excise tax expense, if any, is included in the line item, income tax expense. For the three months ended March 31, 2024 and 2023, we did not incur excise tax expense.

As of March 31, 2024 and December 31, 2023, the Company does not have any unrecognized tax benefits.

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

Reference 1: 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 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-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 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
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Reference 4: 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 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Paragraph 17
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section S99
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

Schedule of Summarizes The Related Party Fees and Expenses

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2024

The following table summarizes the related party fees and expenses incurred by the Company and amounts payable to the Manager for the three months ended March 31, 2024 and 2023.


	For the three months ended March 31,
	2024			2023
Affiliate Payments
Management fees earned	$	1,074,308		$	1,031,799
Less: Outside Fees earned		(16,071	)		(5,000	)
Base management fees, net		1,058,237			1,026,799
Incentive fees		696,504			1,111,206
Total management and incentive fees earned		1,754,741			2,138,005
General and administrative expenses reimbursable to Manager		1,237,790			1,176,376
Total	$	2,992,531		$	3,314,381

Loans Held For Investment, Net (Details) - Schedule of Presents Aging Analyses of Past Due Loans by Amortized Cost - USD ($)

Mar. 31, 2024

Dec. 31, 2023

^[1],[2]

$ 375,844,314

$ 353,640,610

Current Loans [Member]

31-60 Days Past Due [Member]

359,317,126

^[3]

337,238,122

^[4]

61-90 Days Past Due [Member]

90+ Days Past Due [Member]

16,527,188

^[5]

16,402,488

Total Past Due [Member]

16,527,188

16,402,488

Non- Accrual [Member]

Loans Held For Investment, Net [Abstract]

$ 16,527,188

^[5]

$ 20,666,374

^[6]

[1]	Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.
[2]	Loan #9 placed on non-accrual status is included in risk rating category “4” and has a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024 and $1.5 million as of December 31, 2023.
[3]	Loans 1-30 days past due are included in the current loans.
[4]	Loans 1-30 days past due are included in the current loans.
[5]	On May 1, 2023, Loan #9 was placed on non-accrual status. On June 20, 2023, the Administrative Agent to Loan #9 issued an acceleration notice requesting immediate payment of all amounts outstanding and therefore is greater than 90 days past due as of March 31, 2024.
[6]	On May 1, 2023, Loan #9 was placed on non-accrual status. On June 20, 2023, the Administrative Agent to Loan #9 issued an acceleration notice requesting immediate payment of all amounts outstanding and therefore is 90 days past due as of December 31, 2023.

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2024	Mar. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,100,282	19,100,282
Common stock, shares outstanding	18,197,192	18,197,192

Loans Held For Investment, Net (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Loans Held for Investment

The following tables summarize the Company’s loans held for investment as of March 31, 2024 and December 31, 2023:


	As of March 31, 2024
	Outstanding Principal (1)		Original Issue Discount			Carrying Value (1)			Weighted Average Remaining Life (Years) (2)
Senior Term Loans	$	377,576,334	$	(1,732,020	)	$	375,844,314			2.0
Current expected credit loss reserve		-		-			(5,356,018	)
Total loans held at carrying value, net	$	377,576,334	$	(1,732,020	)	$	370,488,296


	As of December 31, 2023
	Outstanding Principal (1)		Original Issue Discount			Carrying Value (1)			Weighted Average Remaining Life (Years) (2)
Senior Term Loans	$	355,745,305	$	(2,104,695	)	$	353,640,610			2.1
Current expected credit loss reserve		-		-			(4,972,647	)
Total loans held at carrying value, net	$	355,745,305	$	(2,104,695	)	$	348,667,963

(1)

The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable.

(2)

Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2024 and December 31, 2023, respectively.

Schedule of Activity Related to the CECL Reserve for Outstanding Balances

The following tables present changes in loans held at carrying value as of and for the three months ended March 31, 2024 and 2023.


	Principal			Original Issue Discount			Current Expected Credit Loss Reserve			Carrying Value (1)
Balance at December 31, 2023	$	355,745,305		$	(2,104,695	)	$	(4,972,647	)	$	348,667,963
New fundings		22,485,888			(105,081	)		-			22,380,807
Principal repayment of loans		(3,663,452	)		-			-			(3,663,452	)
Accretion of original issue discount		-			477,756			-			477,756
PIK Interest		3,008,593			-			-			3,008,593
Current expected credit loss reserve		-			-			(383,371	)		(383,371	)
Balance at March 31, 2024	$	377,576,334		$	(1,732,020	)	$	(5,356,018	)	$	370,488,296

(1)


	Principal			Original Issue Discount			Current Expected Credit Loss Reserve			Carrying Value (1)
Balance at December 31, 2022	$	343,029,334		$	(3,755,796	)	$	(3,940,939	)	$	335,332,599
New fundings		34,060,000			(1,118,340	)		-			32,941,660
Principal repayment of loans		(45,754,443	)		-			-			(45,754,443	)
Accretion of original issue discount		-			908,873			-			908,873
Sale of loan (2)		(13,399,712	)		-			-			(13,399,712	)
PIK Interest		2,256,228			-			-			2,256,228
Current expected credit loss reserve		-			-			(110,995	)		(110,995	)
Balance at March 31, 2023	$	320,191,407		$	(3,965,263	)	$	(4,051,934	)	$	312,174,210

(1)

(2)

One loan was reclassified as held for sale from loans held for investment as the decision was made to sell the loan during the three months ended March 31, 2023 to a syndicate of co-lenders which includes a third party and two affiliates under common control with our Manager. The sale was executed on March 31, 2023 (Note 7).

Schedule of Loans Held at Carrying Value Based on Information

A more detailed listing of the Company’s loans held at carrying value based on information available as of March 31, 2024, is as follows:


Loan (1)	Location(s)	Initial Funding Date (1)	Maturity Date (2)	Total Commitment (3)		Principal Balance		Original Issue Discount			Carrying Value		Percentage of Our Loan Portfolio			Future Fundings		Interest Rate (4)	Periodic Payment (5)	YTM IRR (6)
1	Various	10/27/2022	10/30/2026	$	30,000,000	$	29,820,000	$	(579,713	)	$	29,240,287		7.8	%		-	P+6.5% Cash (11)	I/O	17.4%
2	Michigan	1/13/2022	12/31/2024		35,891,667		39,167,481		(60,915	)		39,106,565		10.4	%		-	P+6.65% Cash, 4.25% PIK (17)	P&I	18.0%
3(18)	Various	3/25/2021	11/29/2024		20,105,628		20,791,605		(45,680	)		20,745,924		5.5	%		-	P+10.38% Cash, 2.75% PIK (7)	P&I	23.5%
4	Arizona	4/19/2021	4/16/2024		14,240,129		16,091,216		-			16,091,216		4.3	%		-	15% PIK (15)	I/O	30.5%
5	Massachusetts	4/19/2021	4/30/2025		3,500,000		3,036,680		-			3,036,680		0.8	%		-	P+12.25% Cash (7)	P&I	22.8%
6	Michigan	8/20/2021	4/15/2024		6,000,000		4,611,348		-			4,611,348		1.2	%		-	P+9% Cash (7)	P&I	20.9%
7	Illinois, Arizona	8/24/2021	6/30/2025		26,002,665		20,663,292		(136,918	)		20,526,374		5.5	%		-	P+6% Cash, 2% PIK (12)	P&I	19.5%
8	West Virginia	9/1/2021	9/1/2024		9,500,000		12,094,954		(26,697	)		12,068,257		3.2	%		-	P+9.25% Cash, 2% PIK (8)	P&I	25.1%
9(19)	Pennsylvania	9/3/2021	6/30/2024		15,000,000		16,527,188		-			16,527,188		4.4	%		-	P+10.75% Cash, 3% PIK (7)	P&I	16.3%
11	Maryland	9/30/2021	9/30/2024		32,000,000		33,478,944		(178,986	)		33,299,958		8.9	%		-	P+8.75% Cash, 2% PIK (7)	I/O	22.0%
12	Various	11/8/2021	10/31/2024		20,000,000		8,710,222		(36,770	)		8,673,452		2.3	%		-	P+7% Cash (13)	P&I	19.5%
13	Michigan	11/22/2021	11/1/2024		13,600,000		13,279,539		(41,628	)		13,237,911		3.5	%		-	P+6% Cash, 1.5% PIK (12)	I/O	19.5%
14	Various	12/27/2021	12/27/2026		5,000,000		5,253,125		-			5,253,125		1.4	%		-	P+12.25% Cash, 2.5% PIK (9)	P&I	23.2%
16	Florida	12/30/2021	12/31/2024		13,000,000		4,232,500		(14,320	)		4,218,180		1.1	%		-	P+9.25% Cash (7)	I/O	35.7%
17	Florida	1/18/2022	1/31/2025		15,000,000		14,550,000		(105,341	)		14,444,659		3.8	%		-	P+4.75% Cash (11)	P&I	14.8%
18	Ohio	2/3/2022	2/28/2025		22,448,992		20,731,419		(72,670	)		20,658,749		5.5	%		-	P+1.75% Cash, 5% PIK (12)	P&I	16.4%
19	Florida	3/11/2022	12/31/2025		20,000,000		19,696,007		(41,819	)		19,654,188		5.2	%		-	11% Cash, 5% PIK	P&I	16.5%
20	Missouri	5/9/2022	5/30/2025		17,000,000		17,781,166		(64,682	)		17,716,484		4.7	%		-	11% Cash, 2% PIK	P&I	14.7%
21	Illinois	7/1/2022	7/29/2026		9,000,000		4,976,931		(51,377	)		4,925,554		1.3	%		-	P+8.5% Cash, 3% PIK (9)	P&I	27.0%
23	Arizona	3/27/2023	3/31/2026		2,000,000		1,820,000		(33,182	)		1,786,818		0.5	%		-	P+7.5% Cash (14)	P&I	18.9%
24	Oregon	3/31/2023	9/27/2026		1,000,000		760,000		-			760,000		0.2	%		-	P+10.5% Cash (10)	P&I	21.7%
25	New York	8/1/2023	6/29/2036		26,309,588		24,834,254		-			24,834,254		6.6	%		-	15% Cash	P&I	16.6%
26	Connecticut	8/31/2023	2/27/2026		5,450,000		5,450,000		(104,394	)		5,345,606		1.4	%		-	14% Cash	P&I	19.1%
27	Nebraska	8/15/2023	6/30/2027		13,061,667		13,061,667		-			13,061,667		3.5	%		-	P+8.75% Cash	P&I	19.0%
28	Ohio	9/13/2023	3/13/2025		2,466,705		2,466,706		-			2,466,706		0.7	%		-	15% Cash	P&I	17.4%
29	Illinois	10/11/2023	10/9/2026		2,000,000		2,010,090		-			2,010,090		0.5	%		-	11.4% Cash, 1.5% PIK	P&I	14.8%
30	Missouri, Arizona	12/20/2023	12/31/2026		15,000,000		15,000,000		(136,926	)		14,863,074		4.0	%		-	P+7.75% Cash (16)	I/O	18.1%
31	California, Arizona	1/3/2024	5/3/2026		6,680,000		6,680,000		-			6,680,000		1.8	%		-	P+8.75% Cash	I/O	19.0%
			Subtotal	$	401,257,040	$	377,576,334	$	(1,732,020	)	$	375,844,314		100	%	$	—		Wtd Average	19.4%

(1)

All loans originated prior to April 1, 2021 were purchased from affiliated entities at fair value plus accrued interest on or subsequent to April 1, 2021. Loan numbering in the table above is maintained from origination for purposes of comparability and may not be sequential due to maturities, payoffs, or refinancings.

(2)

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

(3)

Total Commitment excludes future amounts to be advanced at sole discretion of the lender.

(4)

"P" = prime rate and depicts floating rate loans that pay interest at the prime rate plus a specific percentage; "PIK" = paid-in-kind interest; subtotal represents weighted average interest rate.

(5)

P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term.

(6)

Estimated YTM, calculated on a weighted average principal basis, includes a variety of fees and features that affect the total yield, which may include, but is not limited to, OID, exit fees, prepayment fees, unused fees and contingent features. OID is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. The estimated YTM calculations require management to make estimates and assumptions, including, but not limited to, the timing and amounts of loan draws on delayed draw loans, the timing and collectability of exit fees, the probability and timing of prepayments and the probability of contingent features occurring. For example, certain credit agreements contain provisions pursuant to which certain PIK interest rates and fees earned by us under such credit agreements will decrease upon the satisfaction of certain specified criteria which we believe may improve the risk profile of the applicable borrower. To be conservative, we have not assumed any prepayment penalties or early payoffs in our estimated YTM calculation. Estimated YTM is based on current management estimates and assumptions, which may change. Actual results could differ from those estimates and assumptions.

(7)

This Loan is subject to a prime rate floor of 3.25%

(8)

This Loan is subject to a prime rate floor of 4.00%

(9)

This Loan is subject to a prime rate floor of 4.75%

(10)

This Loan is subject to a prime rate floor of 5.50%

(11)

This Loan is subject to a prime rate floor of 6.25%

(12)

This Loan is subject to a prime rate floor of 7.00%

(13)

This Loan is subject to a prime rate floor of 7.50%

(14)

This Loan is subject to a prime rate floor of 8.00%

(15)

This Loan is subject to a prime rate floor of 8.25%

(16)

This Loan is subject to a prime rate floor of 8.50%

(17)

This Loan is subject to a prime rate cap of 5.85%

(18)

The aggregate loan commitment to Loan #3 includes a $15.9 million initial commitment which has a base interest rate of 13.625%, 2.75% PIK and a second commitment of $4.2 million which has an interest rate of 15.00%, 2.00% PIK. The statistics presented reflect the weighted average of the terms under all advances for the total aggregate loan commitment.

(19)

As of May 1, 2023, Loan #9 was placed on non-accrual status and remains on non-accrual as of March 31, 2024. Loan #9 is included on the consolidated balance sheet as a loan held for investment – related party (Note 7).

Schedule of Presents Aging Analyses of Past Due Loans by Amortized Cost

The following table presents aging analyses of past due loans by amortized cost, excluding the CECL reserve, as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, there was one loan with principal greater than 90 days past due.


	As of March 31, 2024
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (2)		Total Past Due		Total Loans		Non- Accrual(2)
Senior Term Loans	$	359,317,126	$	-	$	-	$	16,527,188	$	16,527,188	$	375,844,314	$	16,527,188
Total	$	359,317,126	$	-	$	-	$	16,527,188	$	16,527,188	$	375,844,314	$	16,527,188

(1)

Loans 1-30 days past due are included in the current loans.

(2)

On May 1, 2023, Loan #9 was placed on non-accrual status. On June 20, 2023, the Administrative Agent to Loan #9 issued an acceleration notice requesting immediate payment of all amounts outstanding and therefore is greater than 90 days past due as of March 31, 2024.


	As of December 31, 2023
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans		Non- Accrual(2)
Senior Term Loans	$	337,238,122	$	-	$	-	$	16,402,488	$	16,402,488	$	353,640,610	$	20,666,374
Total	$	337,238,122	$	-	$	-	$	16,402,488	$	16,402,488	$	353,640,610	$	20,666,374

(1)

Loans 1-30 days past due are included in the current loans.

(2)

Schedule of Risk Rating

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
2		Low risk
3		Moderate/average risk
4		High risk/potential for loss: a loan that has a risk of realizing a principal loss
5		Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded

Schedule of Carrying Value of Loans Held for Investment

As of March 31, 2024 and December 31, 2023, the carrying value, excluding the current expected credit loss reserve (the “CECL Reserve”), of the Company’s loans within each risk rating category by year of origination is as follows:


Risk	As of March 31, 2024(1)(2)										As of December 31, 2023(1)(2)
Rating	2024		2023		2022		2021		Total		2023		2022		2021		2020		Total
1	$	-	$	760,000	$	37,370,672	$	-	$	38,130,672	$	820,000	$	37,644,911	$	-	$	-	$	38,464,911
2		973,078		61,901,509		76,437,863		46,368,517		185,680,968		51,320,161		107,007,422		46,792,941		-		205,120,524
3		6,680,000		2,466,705		39,106,565		59,092,743		107,346,013		2,466,705		5,296,308		58,829,717		-		66,592,730
4		-		-		-		44,686,661		44,686,661		-		—		43,462,445		-		43,462,445
5		-		-		-		-		-		-		-		-		-		-
Total	$	7,653,078	$	65,128,214	$	152,915,100	$	150,147,921	$	375,844,314	$	54,606,866	$	149,948,641	$	149,085,103	$	-	$	353,640,610

(1)

Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.

(2)

Loan #9 placed on non-accrual status is included in risk rating category “4” and has a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024 and $1.5 million as of December 31, 2023.

Schedule of Real Estate Collateral Coverage

Real estate collateral coverage is also a significant credit quality indicator, and real estate collateral coverage, excluding the CECL Reserve, was as follows as of March 31, 2024 and December 31, 2023:


As of March 31, 2024 Real Estate Collateral Coverage(1)
	< 1.0x		1.0x – 1.25x		1.25x – 1.5x		1.50x – 1.75x		1.75x – 2.0x		> 2.0x		Total
Fixed-rate	$	2,466,705	$	17,716,484	$	44,488,442	$	-	$	20,658,750	$	2,010,090	$	87,340,471
Floating-rate		126,010,679		38,866,605		69,642,441		-		-		53,984,118		288,503,843
	$	128,477,384	$	56,583,089	$	114,130,883	$	-	$	20,658,750	$	55,994,208	$	375,844,314


As of December 31, 2023 Real Estate Collateral Coverage(1)
	< 1.0x		1.0x – 1.25x		1.25x – 1.5x		1.50x – 1.75x		1.75x – 2.0x		> 2.0x		Total
Fixed-rate	$	2,466,706	$	-	$	49,041,867	$	17,613,043	$	-	$	—	$	69,121,616
Floating-rate		104,322,083		35,491,887		38,729,046		15,396,370		5,296,308		85,283,300		284,518,994
	$	106,788,789	$	35,491,887	$	87,770,913	$	33,009,413	$	5,296,308	$	85,283,300	$	353,640,610

(1)

Real estate collateral coverage is calculated based upon most recent third-party appraised values. The Company generally obtains new appraisal of all material real estate collateral at least once annually.

Summary of Geography Concentration of Loans Held for Investment

Geography concentration of our loans held for investment is also a significant credit quality indicator. As of March 31, 2024 and December 31, 2023, our borrowers have operations in the jurisdictions in the table below:


As of March 31, 2024						As of December 31, 2023
Jurisdiction	Outstanding Principal (1)		Our Loan Portfolio			Jurisdiction	Outstanding Principal (1)		Our Loan Portfolio
Michigan	$	57,058,369		15	%	Michigan	$	56,466,635		16	%
Maryland		54,209,643		14	%	Maryland		53,907,352		15	%
Florida		47,748,013		13	%	Florida		48,815,066		14	%
Ohio		32,495,778		9	%	Ohio		27,902,362		8	%
Illinois		26,502,449		7	%	Illinois		25,599,133		7	%
Missouri		32,781,166		9	%	Missouri		25,191,575		7	%
Arizona		25,262,329		7	%	Arizona		24,466,609		7	%
New York		24,834,254		7	%	New York		22,611,938		6	%
Pennsylvania		21,782,997		6	%	Pennsylvania		21,674,160		6	%
Nebraska		13,061,667		3	%	Nebraska		13,061,667		4	%
Massachusetts		11,107,621		3	%	Massachusetts		12,308,310		3	%
West Virginia		12,094,954		3	%	West Virginia		11,706,059		3	%
California		6,680,000		2	%	California		—		0	%
Nevada		5,747,094		2	%	Nevada		5,764,439		2	%
Connecticut		5,450,000		1	%	Connecticut		5,450,000		2	%
Oregon		760,000		0	%	Oregon		820,000		0	%
Total	$	377,576,334		100	%	Total	$	355,745,305		100	%

(1)

The principal balance of the loans not secured by real estate collateral are included in the jurisdiction representing the principal place of business.

Schedule of Activity Related to the CECL Reserve for Outstanding Balances

Activity related to the CECL Reserve for outstanding balances and unfunded commitments on the Company’s loans held at carrying value and loans receivable at carrying value as of and for the three months ended March 31, 2024 and 2023 is presented in the table below.


	Outstanding		Unfunded			Total
Balance at December 31, 2023	$	4,972,647	$	3,092		$	4,975,739
Provision (reversal) for current expected credit losses		383,371		(3,092	)		380,279
Balance at March 31, 2024	$	5,356,018	$	-		$	5,356,018


	Outstanding		Unfunded			Total
Balance at December 31, 2022	$	3,940,939	$	94,415		$	4,035,354
Provision (reversal) for current expected credit losses		110,995		(14,876	)		96,119
Balance at March 31, 2023	$	4,051,934	$	79,539		$	4,131,473

Loans Held For Investment, Net

3 Months Ended

Mar. 31, 2024

Loans Held For Investment, Net [Abstract]

LOANS HELD FOR INVESTMENT, NET

3. LOANS HELD FOR INVESTMENT, NET

As of March 31, 2024 and December 31, 2023, the Company’s portfolio was comprised of loans to 28 and 27 borrowers, respectively, that the Company has the ability and intent to hold until maturity or payoff. The portfolio of loans held for investment are reported on the consolidated balance sheets at amortized cost. The Company’s aggregate loan commitments and outstanding principal were approximately $401.3 million and $378.8 million, respectively, as of March 31, 2024, and $377.6 million and $351.4 million, respectively as of December 31, 2023. During the three months ended March 31, 2024, the Company funded approximately $22.4 million in new loan principal.

As of March 31, 2024 and December 31, 2023, approximately 76.6% and 80.5%, respectively, of the Company’s portfolio was comprised of floating rate loans that pay interest at the Prime Rate plus an applicable margin, and were subject to Prime Rate ceilings and floors as disclosed in the tables below. The carrying value of these loans was approximately $287.7 million and $284.5 million as of March 31, 2024 and December 31, 2023, respectively.

The remaining 23.4% and 19.5% of the portfolio was comprised of fixed rate loans that had a carrying value of approximately $88.1 million and $69.1 million as of March 31, 2024 and December 31, 2023, respectively.

The following tables summarize the Company’s loans held for investment as of March 31, 2024 and December 31, 2023:


	As of March 31, 2024
	Outstanding Principal (1)		Original Issue Discount			Carrying Value (1)			Weighted Average Remaining Life (Years) (2)
Senior Term Loans	$	377,576,334	$	(1,732,020	)	$	375,844,314			2.0
Current expected credit loss reserve		-		-			(5,356,018	)
Total loans held at carrying value, net	$	377,576,334	$	(1,732,020	)	$	370,488,296


	As of December 31, 2023
	Outstanding Principal (1)		Original Issue Discount			Carrying Value (1)			Weighted Average Remaining Life (Years) (2)
Senior Term Loans	$	355,745,305	$	(2,104,695	)	$	353,640,610			2.1
Current expected credit loss reserve		-		-			(4,972,647	)
Total loans held at carrying value, net	$	355,745,305	$	(2,104,695	)	$	348,667,963

(1)

(2)

Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2024 and December 31, 2023, respectively.

The following tables present changes in loans held at carrying value as of and for the three months ended March 31, 2024 and 2023.


	Principal			Original Issue Discount			Current Expected Credit Loss Reserve			Carrying Value (1)
Balance at December 31, 2023	$	355,745,305		$	(2,104,695	)	$	(4,972,647	)	$	348,667,963
New fundings		22,485,888			(105,081	)		-			22,380,807
Principal repayment of loans		(3,663,452	)		-			-			(3,663,452	)
Accretion of original issue discount		-			477,756			-			477,756
PIK Interest		3,008,593			-			-			3,008,593
Current expected credit loss reserve		-			-			(383,371	)		(383,371	)
Balance at March 31, 2024	$	377,576,334		$	(1,732,020	)	$	(5,356,018	)	$	370,488,296

(1)


	Principal			Original Issue Discount			Current Expected Credit Loss Reserve			Carrying Value (1)
Balance at December 31, 2022	$	343,029,334		$	(3,755,796	)	$	(3,940,939	)	$	335,332,599
New fundings		34,060,000			(1,118,340	)		-			32,941,660
Principal repayment of loans		(45,754,443	)		-			-			(45,754,443	)
Accretion of original issue discount		-			908,873			-			908,873
Sale of loan (2)		(13,399,712	)		-			-			(13,399,712	)
PIK Interest		2,256,228			-			-			2,256,228
Current expected credit loss reserve		-			-			(110,995	)		(110,995	)
Balance at March 31, 2023	$	320,191,407		$	(3,965,263	)	$	(4,051,934	)	$	312,174,210

(1)

(2)

A more detailed listing of the Company’s loans held at carrying value based on information available as of March 31, 2024, is as follows:


Loan (1)	Location(s)	Initial Funding Date (1)	Maturity Date (2)	Total Commitment (3)		Principal Balance		Original Issue Discount			Carrying Value		Percentage of Our Loan Portfolio			Future Fundings		Interest Rate (4)	Periodic Payment (5)	YTM IRR (6)
1	Various	10/27/2022	10/30/2026	$	30,000,000	$	29,820,000	$	(579,713	)	$	29,240,287		7.8	%		-	P+6.5% Cash (11)	I/O	17.4%
2	Michigan	1/13/2022	12/31/2024		35,891,667		39,167,481		(60,915	)		39,106,565		10.4	%		-	P+6.65% Cash, 4.25% PIK (17)	P&I	18.0%
3(18)	Various	3/25/2021	11/29/2024		20,105,628		20,791,605		(45,680	)		20,745,924		5.5	%		-	P+10.38% Cash, 2.75% PIK (7)	P&I	23.5%
4	Arizona	4/19/2021	4/16/2024		14,240,129		16,091,216		-			16,091,216		4.3	%		-	15% PIK (15)	I/O	30.5%
5	Massachusetts	4/19/2021	4/30/2025		3,500,000		3,036,680		-			3,036,680		0.8	%		-	P+12.25% Cash (7)	P&I	22.8%
6	Michigan	8/20/2021	4/15/2024		6,000,000		4,611,348		-			4,611,348		1.2	%		-	P+9% Cash (7)	P&I	20.9%
7	Illinois, Arizona	8/24/2021	6/30/2025		26,002,665		20,663,292		(136,918	)		20,526,374		5.5	%		-	P+6% Cash, 2% PIK (12)	P&I	19.5%
8	West Virginia	9/1/2021	9/1/2024		9,500,000		12,094,954		(26,697	)		12,068,257		3.2	%		-	P+9.25% Cash, 2% PIK (8)	P&I	25.1%
9(19)	Pennsylvania	9/3/2021	6/30/2024		15,000,000		16,527,188		-			16,527,188		4.4	%		-	P+10.75% Cash, 3% PIK (7)	P&I	16.3%
11	Maryland	9/30/2021	9/30/2024		32,000,000		33,478,944		(178,986	)		33,299,958		8.9	%		-	P+8.75% Cash, 2% PIK (7)	I/O	22.0%
12	Various	11/8/2021	10/31/2024		20,000,000		8,710,222		(36,770	)		8,673,452		2.3	%		-	P+7% Cash (13)	P&I	19.5%
13	Michigan	11/22/2021	11/1/2024		13,600,000		13,279,539		(41,628	)		13,237,911		3.5	%		-	P+6% Cash, 1.5% PIK (12)	I/O	19.5%
14	Various	12/27/2021	12/27/2026		5,000,000		5,253,125		-			5,253,125		1.4	%		-	P+12.25% Cash, 2.5% PIK (9)	P&I	23.2%
16	Florida	12/30/2021	12/31/2024		13,000,000		4,232,500		(14,320	)		4,218,180		1.1	%		-	P+9.25% Cash (7)	I/O	35.7%
17	Florida	1/18/2022	1/31/2025		15,000,000		14,550,000		(105,341	)		14,444,659		3.8	%		-	P+4.75% Cash (11)	P&I	14.8%
18	Ohio	2/3/2022	2/28/2025		22,448,992		20,731,419		(72,670	)		20,658,749		5.5	%		-	P+1.75% Cash, 5% PIK (12)	P&I	16.4%
19	Florida	3/11/2022	12/31/2025		20,000,000		19,696,007		(41,819	)		19,654,188		5.2	%		-	11% Cash, 5% PIK	P&I	16.5%
20	Missouri	5/9/2022	5/30/2025		17,000,000		17,781,166		(64,682	)		17,716,484		4.7	%		-	11% Cash, 2% PIK	P&I	14.7%
21	Illinois	7/1/2022	7/29/2026		9,000,000		4,976,931		(51,377	)		4,925,554		1.3	%		-	P+8.5% Cash, 3% PIK (9)	P&I	27.0%
23	Arizona	3/27/2023	3/31/2026		2,000,000		1,820,000		(33,182	)		1,786,818		0.5	%		-	P+7.5% Cash (14)	P&I	18.9%
24	Oregon	3/31/2023	9/27/2026		1,000,000		760,000		-			760,000		0.2	%		-	P+10.5% Cash (10)	P&I	21.7%
25	New York	8/1/2023	6/29/2036		26,309,588		24,834,254		-			24,834,254		6.6	%		-	15% Cash	P&I	16.6%
26	Connecticut	8/31/2023	2/27/2026		5,450,000		5,450,000		(104,394	)		5,345,606		1.4	%		-	14% Cash	P&I	19.1%
27	Nebraska	8/15/2023	6/30/2027		13,061,667		13,061,667		-			13,061,667		3.5	%		-	P+8.75% Cash	P&I	19.0%
28	Ohio	9/13/2023	3/13/2025		2,466,705		2,466,706		-			2,466,706		0.7	%		-	15% Cash	P&I	17.4%
29	Illinois	10/11/2023	10/9/2026		2,000,000		2,010,090		-			2,010,090		0.5	%		-	11.4% Cash, 1.5% PIK	P&I	14.8%
30	Missouri, Arizona	12/20/2023	12/31/2026		15,000,000		15,000,000		(136,926	)		14,863,074		4.0	%		-	P+7.75% Cash (16)	I/O	18.1%
31	California, Arizona	1/3/2024	5/3/2026		6,680,000		6,680,000		-			6,680,000		1.8	%		-	P+8.75% Cash	I/O	19.0%
			Subtotal	$	401,257,040	$	377,576,334	$	(1,732,020	)	$	375,844,314		100	%	$	—		Wtd Average	19.4%

(1)

(2)

(3)

Total Commitment excludes future amounts to be advanced at sole discretion of the lender.

(4)

"P" = prime rate and depicts floating rate loans that pay interest at the prime rate plus a specific percentage; "PIK" = paid-in-kind interest; subtotal represents weighted average interest rate.

(5)

P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term.

(6)

(7)

This Loan is subject to a prime rate floor of 3.25%

(8)

This Loan is subject to a prime rate floor of 4.00%

(9)

This Loan is subject to a prime rate floor of 4.75%

(10)

This Loan is subject to a prime rate floor of 5.50%

(11)

This Loan is subject to a prime rate floor of 6.25%

(12)

This Loan is subject to a prime rate floor of 7.00%

(13)

This Loan is subject to a prime rate floor of 7.50%

(14)

This Loan is subject to a prime rate floor of 8.00%

(15)

This Loan is subject to a prime rate floor of 8.25%

(16)

This Loan is subject to a prime rate floor of 8.50%

(17)

This Loan is subject to a prime rate cap of 5.85%

(18)

(19)


	As of March 31, 2024
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (2)		Total Past Due		Total Loans		Non- Accrual(2)
Senior Term Loans	$	359,317,126	$	-	$	-	$	16,527,188	$	16,527,188	$	375,844,314	$	16,527,188
Total	$	359,317,126	$	-	$	-	$	16,527,188	$	16,527,188	$	375,844,314	$	16,527,188

(1)

Loans 1-30 days past due are included in the current loans.

(2)


	As of December 31, 2023
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans		Non- Accrual(2)
Senior Term Loans	$	337,238,122	$	-	$	-	$	16,402,488	$	16,402,488	$	353,640,610	$	20,666,374
Total	$	337,238,122	$	-	$	-	$	16,402,488	$	16,402,488	$	353,640,610	$	20,666,374

(1)

Loans 1-30 days past due are included in the current loans.

(2)

Non-Accrual Loans

As of March 31, 2024 and December 31, 2023, there was one and two loans placed on non-accrual status, respectively.

Loan #9 was placed on non-accrual status as of May 1, 2023 and has both an outstanding principal balance and carrying value of approximately $16.5 million and $16.4 million as of March 31, 2024 and December 31, 2023, respectively, and carries a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024. The Company ceased accruing interest on the first date of delinquency, based on expectation of its ability to collect all amounts then due from the borrower. As a result, there was no accrued interest to write-off when the loan was placed on non-accrual.

Loan #6 was placed on non-accrual status as of December 1, 2023 and has both an outstanding principal balance and carrying value of approximately $4.3 million as of December 31, 2023. In March 2024, the Company entered into an amendment to Loan #6, which

extended the maturity date to April 15, 2024. In connection with this amendment, Loan #6 was restored to accrual status. In April 2024, the loan maturity was further extended to May 31, 2024.

Credit Quality Indicators

The Company assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, payment history, real estate collateral coverage, property type, geographic and local market dynamics, financial performance, loan to enterprise value and fixed charge coverage ratios, loan structure and exit strategy, and project sponsorship. This review is performed quarterly. 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
2		Low risk
3		Moderate/average risk
4		High risk/potential for loss: a loan that has a risk of realizing a principal loss
5		Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded

The risk ratings are primarily based on historical data and current conditions specific to each portfolio company, as well as consideration of future economic conditions and each borrower’s estimated ability to meet debt service requirements. The risk ratings shown in the following table as of March 31, 2024 and December 31, 2023 consider borrower specific credit history and performance and reflect a quarterly re-evaluation of overall current macroeconomic conditions affecting the Company’s borrowers. As interest rates have increased due to rising rates from the Federal Reserve Board, it has impacted borrowers’ ability to service their debt obligations on a global scale. The changes in risk ratings had an effect on the level of the current expected credit loss reserve though, other than the one loan placed on non-accrual status, the loans continued to perform as expected. For approximately 65.7% of the portfolio, the fair value of the underlying real estate collateral exceeded the amounts outstanding under the loans as of March 31, 2024. The remaining approximately 34.3% of the portfolio, while not fully collateralized by real estate, may be partially collateralized by real estate and was secured by other forms of collateral including equipment, receivables, licenses and/or other assets of the borrowers to the extent permitted by applicable laws and regulations governing such borrowers. The amounts above exclude any apportionment of real estate collateral permissible under the applicable income and asset tests for REIT eligibility.


Risk	As of March 31, 2024(1)(2)										As of December 31, 2023(1)(2)
Rating	2024		2023		2022		2021		Total		2023		2022		2021		2020		Total
1	$	-	$	760,000	$	37,370,672	$	-	$	38,130,672	$	820,000	$	37,644,911	$	-	$	-	$	38,464,911
2		973,078		61,901,509		76,437,863		46,368,517		185,680,968		51,320,161		107,007,422		46,792,941		-		205,120,524
3		6,680,000		2,466,705		39,106,565		59,092,743		107,346,013		2,466,705		5,296,308		58,829,717		-		66,592,730
4		-		-		-		44,686,661		44,686,661		-		—		43,462,445		-		43,462,445
5		-		-		-		-		-		-		-		-		-		-
Total	$	7,653,078	$	65,128,214	$	152,915,100	$	150,147,921	$	375,844,314	$	54,606,866	$	149,948,641	$	149,085,103	$	-	$	353,640,610

(1)

Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.

(2)


As of March 31, 2024 Real Estate Collateral Coverage(1)
	< 1.0x		1.0x – 1.25x		1.25x – 1.5x		1.50x – 1.75x		1.75x – 2.0x		> 2.0x		Total
Fixed-rate	$	2,466,705	$	17,716,484	$	44,488,442	$	-	$	20,658,750	$	2,010,090	$	87,340,471
Floating-rate		126,010,679		38,866,605		69,642,441		-		-		53,984,118		288,503,843
	$	128,477,384	$	56,583,089	$	114,130,883	$	-	$	20,658,750	$	55,994,208	$	375,844,314


As of December 31, 2023 Real Estate Collateral Coverage(1)
	< 1.0x		1.0x – 1.25x		1.25x – 1.5x		1.50x – 1.75x		1.75x – 2.0x		> 2.0x		Total
Fixed-rate	$	2,466,706	$	-	$	49,041,867	$	17,613,043	$	-	$	—	$	69,121,616
Floating-rate		104,322,083		35,491,887		38,729,046		15,396,370		5,296,308		85,283,300		284,518,994
	$	106,788,789	$	35,491,887	$	87,770,913	$	33,009,413	$	5,296,308	$	85,283,300	$	353,640,610

(1)


As of March 31, 2024						As of December 31, 2023
Jurisdiction	Outstanding Principal (1)		Our Loan Portfolio			Jurisdiction	Outstanding Principal (1)		Our Loan Portfolio
Michigan	$	57,058,369		15	%	Michigan	$	56,466,635		16	%
Maryland		54,209,643		14	%	Maryland		53,907,352		15	%
Florida		47,748,013		13	%	Florida		48,815,066		14	%
Ohio		32,495,778		9	%	Ohio		27,902,362		8	%
Illinois		26,502,449		7	%	Illinois		25,599,133		7	%
Missouri		32,781,166		9	%	Missouri		25,191,575		7	%
Arizona		25,262,329		7	%	Arizona		24,466,609		7	%
New York		24,834,254		7	%	New York		22,611,938		6	%
Pennsylvania		21,782,997		6	%	Pennsylvania		21,674,160		6	%
Nebraska		13,061,667		3	%	Nebraska		13,061,667		4	%
Massachusetts		11,107,621		3	%	Massachusetts		12,308,310		3	%
West Virginia		12,094,954		3	%	West Virginia		11,706,059		3	%
California		6,680,000		2	%	California		—		0	%
Nevada		5,747,094		2	%	Nevada		5,764,439		2	%
Connecticut		5,450,000		1	%	Connecticut		5,450,000		2	%
Oregon		760,000		0	%	Oregon		820,000		0	%
Total	$	377,576,334		100	%	Total	$	355,745,305		100	%

(1)

The principal balance of the loans not secured by real estate collateral are included in the jurisdiction representing the principal place of business.

CECL Reserve

The Company records an allowance for current expected credit losses for its loans held for investment. The allowances are deducted from the gross carrying amount of the assets to present the net carrying value of the amounts expected to be collected on such assets. The Company estimates its CECL Reserve using among other inputs, third-party valuations, and a third-party probability-weighted model that considers the likelihood of default and expected loss given default for each individual loan based on the risk profile for approximately three years after which we immediately revert to use of historical loss data.

ASC 326 requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the macroeconomic environment. The Company considers multiple datapoints and methodologies that may include likelihood of default and expected loss given default for each individual loan, valuations derived from discount cash flows (“DCF”), and other inputs including the risk rating of the loan, how recently the loan was originated compared to the measurement date, and expected prepayment, if applicable. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance sheet credit exposures such as unfunded loan commitments.

The Company evaluates its loans on a collective (pool) basis by aggregating on the basis of similar risk characteristics as explained above. We make the judgment that loans to cannabis-related borrowers that are fully collateralized by real estate exhibit similar risk characteristics and are evaluated as a pool. Further, loans that have no real estate collateral, but are secured by other forms of collateral, including equity pledges of the borrower, and otherwise have similar characteristics as those collateralized by real estate are evaluated as a pool. All other loans are analyzed individually, either because they operate in a different industry, may have a different risk profile, or maturities that extend beyond the forecast horizon for which we are able to derive reasonable and supportable forecasts.

Estimating the CECL Reserve also requires significant judgment with respect to various factors, including (i) the appropriate historical loan loss reference data, (ii) the expected timing of loan repayments, (iii) calibration of the likelihood of default to reflect the risk characteristics of the Company’s loan portfolio, and (iv) the Company’s current and future view of the macroeconomic environment. From time to time, 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 we have

deemed the borrower/sponsor to be experiencing financial difficulty, we 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 CECL Reserve.

To estimate the historic loan losses relevant to the Company’s portfolio, the Company evaluates its historical loan performance, which includes zero realized loan losses since the inception of its operations. Additionally, the Company analyzed its repayment history, noting it has limited “true” operating history, since the incorporation date of March 30, 2021. However, the Company’s Sponsor and its affiliates have had operations for the past four fiscal years and have made investments in similar loans that have similar characteristics including interest rate, collateral coverage, guarantees, and prepayment/make whole provisions, which fall into the pools identified above. Given the similarity of the structuring of the credit agreements for the loans in the Company’s portfolio to the loans originated by its Sponsor, management considered it appropriate to consider the past repayment history of loans originated by the Sponsor and its affiliates in determining the extent to which a CECL Reserve shall be recorded.

In addition, the Company reviews each loan on a quarterly basis and evaluates the borrower’s ability to pay the monthly interest and principal, if required, as well as the loan-to-value (LTV) ratio. When evaluating qualitative factors that may indicate the need for a CECL Reserve, the Company forecasts losses considering a variety of factors. In considering the potential current expected credit loss, the Manager primarily considers significant inputs to the Company’s forecasting methods, which include (i) key loan-specific inputs such as the value of the real estate collateral, liens on equity (including the equity in the entity that holds the state-issued license to cultivate, process, distribute, or retail cannabis), presence of personal or corporate guarantees, among other credit enhancements, LTV ratio, rate type (fixed or floating) and IRR, loan-term, geographic location, and expected timing and amount of future loan fundings, (ii) performance against the underwritten business plan and the Company’s internal loan risk rating, and (iii) a macro-economic forecast. Estimating the enterprise value of our borrowers in order to calculate LTV ratios is often a significant estimate. The Manager utilizes a third-party valuation appraiser to assist with the Company’s valuation process primarily using comparable transactions to estimate enterprise value of its portfolio companies and supplement such analysis with a multiple-based approach to enterprise value to revenue multiples of publicly-traded comparable companies obtained from S&P Capital IQ as of March 31, 2024, to which the Manager may apply a private company discount based on the Company’s current borrower profile.

During the three-month period ended March 31, 2024, the Company observed that valuation multiples of publicly traded companies in the industry improved as a result of macro-economic factors. Such factors include, but are not limited to, expectations surrounding future interest rate changes by the Federal Reserve and public announcements about proposed regulatory reform relating to a potential rescheduling of cannabis at the federal level. Management contemplates the impacts of these macro-economic factors during the forecast period when determining enterprise value and ultimately, the CECL reserve. Estimates may change in future periods based on available future macro-economic data and might result in a material change in the Company’s future estimates of expected credit losses for its loan portfolio.

Regarding real estate collateral, the Company generally cannot take the position of mortgagee-in-possession as long as the property is used by a cannabis operator, but it can request that the court appoint a receiver to manage and operate the subject real property until the foreclosure proceedings are completed. Additionally, while the Company cannot foreclose under state Uniform Commercial Code (“UCC”) and take title or sell equity in a licensed cannabis business, a potential purchaser of a delinquent or defaulted loan could.

In order to estimate the future expected loan losses relevant to the Company’s portfolio, the Company utilizes historical market loan loss data obtained from a third-party database for commercial real estate loans, which the Company believes is a reasonably comparable and available data set to use as an input for its type of loans. The Company believes this dataset to be representative for future credit losses whilst considering that the cannabis industry is maturing, and consumer adoption, demand for production, and retail capacity are increasing akin to commercial real estate over time. For periods beyond the reasonable and supportable forecast period, the Company reverts back to historical loss data.

All of the above assumptions, although made with the most available information at the time of the estimate, are subjective and actual activity may not follow the estimated schedule. These assumptions impact the future balances that the loss rate will be applied to and as such impact the Company’s CECL Reserve. As the Company acquires new loans and the Manager monitors loan and borrower performance, these estimates will be revised each period.


	Outstanding		Unfunded			Total
Balance at December 31, 2023	$	4,972,647	$	3,092		$	4,975,739
Provision (reversal) for current expected credit losses		383,371		(3,092	)		380,279
Balance at March 31, 2024	$	5,356,018	$	-		$	5,356,018


	Outstanding		Unfunded			Total
Balance at December 31, 2022	$	3,940,939	$	94,415		$	4,035,354
Provision (reversal) for current expected credit losses		110,995		(14,876	)		96,119
Balance at March 31, 2023	$	4,051,934	$	79,539		$	4,131,473

The Company has made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of the related loans held for investment in determining the CECL Reserve, as any uncollectible accrued interest receivable is written off in a timely manner. To date, the Company has had zero write-offs related to uncollectible interest receivable, but will discontinue accrual of interest on loans if deemed to be uncollectible, with any previously accrued uncollected interest on the loan charged to interest income in the same period. For the two loans on non-accrual, the Company ceased accruing interest on the first date of delinquency, based on expectation of its ability to collect all amounts then due from the borrower. As a result, there was no accrued interest to write-off when the loan was placed on non-accrual status.

Fair Value Measurements (Details) - Schedule of Carrying Values and Fair Values of the Company’s Financial Assets and Liabilities - USD ($)

Mar. 31, 2024

Dec. 31, 2023

Jan. 24, 2023

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Loans held for investment, Carrying Value

^[1],[2]

$ 375,844,314

$ 353,640,610

Cash and cash equivalents, Carrying Value

6,904,113

7,898,040

Interest receivable, Carrying Value

926,852

1,004,140

Other receivables and assets, net, Carrying Value

5,143,318

705,960

192,354

107,225

Accounts payable and other liabilities, Carrying Value

1,342,872

1,135,355

Interest reserve, Carrying Value

2,519,871

1,074,889

Management and incentive fees payable, Carrying Value

1,754,741

2,051,531

Related party payables, Carrying Value

1,819,428

3,243,775

Dividend payable, Carrying Value

9,007,244

13,866,656

Dividend payable, Fair Value

13,400,000

$ 19,000,000

Fair Value, Inputs, Level 1 [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Cash and cash equivalents, Carrying Value

6,904,113

7,898,040

Cash and cash equivalents, Fair Value

6,904,113

7,898,040

Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Interest receivable, Carrying Value

926,852

1,004,140

Interest receivable, Fair Value

926,852

1,004,140

Other receivables and assets, net, Carrying Value

5,143,318

705,960

Other receivables and assets, net, Fair Value

5,143,318

705,960

192,354

107,225

Related party receivables, Fair Value

192,354

107,225

Revolving loan, Carrying Value

81,250,000

66,000,000

Revolving loan, Fair Value

80,863,975

65,633,408

Accounts payable and other liabilities, Carrying Value

1,342,872

1,135,355

Accounts payable and other liabilities, Fair Value

1,342,872

1,135,355

Interest reserve, Carrying Value

2,519,871

1,074,889

Interest reserve, Fair Value

2,519,871

1,074,889

Management and incentive fees payable, Carrying Value

1,819,428

3,243,775

Management and incentive fees payable, Fair Value

1,819,428

3,243,775

Related party payables, Carrying Value

1,754,741

2,051,531

Related party payables, Fair Value

1,754,741

2,051,531

Dividend payable, Carrying Value

9,007,244

13,866,656

Dividend payable, Fair Value

9,007,244

13,866,656

Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Loans held for investment, Carrying Value

375,844,314

353,640,610

Loans held for investment, Fair Value

$ 373,256,778

$ 351,952,876

[1]	Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.
[2]	Loan #9 placed on non-accrual status is included in risk rating category “4” and has a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024 and $1.5 million as of December 31, 2023.

Dividends and Distributions

3 Months Ended

Mar. 31, 2024

Dividends and Distributions [Abstract]

DIVIDENDS AND DISTRIBUTIONS

13. DIVIDENDS AND DISTRIBUTIONS

The following table summarizes the Company’s dividends declared during the three months ended March 31, 2024 and 2023.


	Record Date	Payment Date	Common Share Distribution Amount		Taxable Ordinary Income		Return of Capital		Section 199A Dividends
Regular cash dividend	3/28/2024	4/15/2024	$	0.47	$	0.47	$	-	$	0.47
Total cash dividend			$	0.47	$	0.47	$	-	$	0.47


	Record Date	Payment Date	Common Share Distribution Amount		Taxable Ordinary Income		Return of Capital		Section 199A Dividends
Regular cash dividend	3/31/2023	4/14/2023	$	0.47	$	0.47	$	-	$	0.47
Total cash dividend			$	0.47	$	0.47	$	-	$	0.47

Stockholders’ Equity (Tables)

3 Months Ended

Mar. 31, 2024

Stockholders’ Equity [Abstract]

Schedule of Restricted Stock Awards

Based on the closing market price of our common stock on March 31, 2024 and December 31, 2023, the aggregate intrinsic value of our restricted stock awards was as follows:


	As of March 31, 2024				As of December 31, 2023
	Outstanding		Vested		Outstanding		Vested
Aggregate intrinsic value	$	5,677,200	$	1,073,937	$	5,525,370	$	937,068

Schedule of Restricted Stock Activity

The following table summarizes the restricted stock activity for the Company’s directors and officers and employees of the Manager during the three months ended March 31, 2024 and 2023.


	Three months ended March 31, 2024			Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2023		366,647		$	14.86
Vested		(6,647	)	$	16.00
Unvested Balance at March 31, 2024		360,000		$	14.84


	Three months ended March 31, 2023			Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2022		80,984		$	15.71
Vested		(6,952	)	$	16.00
Forfeited		(417	)	$	16.00
Unvested Balance at March 31, 2023		73,615		$	15.68

Commitments and Contingencies (Details) - Schedule of Material Commitments	Mar. 31, 2024 USD ($)
Other Commitments [Line Items]
2024
2025
2026	81,250,000
2027
2028
Thereafter
Total	81,250,000
Undrawn commitment [Member]
Other Commitments [Line Items]
2024
2025
2026
2027
2028
Thereafter
Total
Revolving Loan [Member]
Other Commitments [Line Items]
2024
2025
2026	81,250,000
2027
2028
Thereafter
Total	$ 81,250,000

Organization and Description of Business

3 Months Ended

Mar. 31, 2024

Organization and Description of Business [Abstract]

ORGANIZATION AND DESCRIPTION OF BUSINESS

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Chicago Atlantic Real Estate Finance, Inc., and its wholly owned consolidated subsidiary, Chicago Atlantic Lincoln LLC (“CAL”) (collectively the “Company”, “we”, or “our”), is a commercial mortgage real estate investment trust (“REIT”) incorporated in the state of Maryland on March 30, 2021. The Company has elected to be taxed as a REIT for United States federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2021. The Company generally will not be subject to United States federal income taxes on its REIT taxable income if it annually distributes to stockholders at least 90% of its REIT taxable income prior to the deduction for dividends paid and complies with various other requirements as a REIT.

The Company operates as one operating segment and its primary investment objective is to provide attractive, risk-adjusted returns for stockholders over time, primarily through consistent current income (dividends and distributions) and secondarily, through capital appreciation. The Company intends to achieve this objective by originating, structuring, and investing in first mortgage loans and alternative structured financings secured by commercial real estate properties. The Company’s loan portfolio is primarily comprised of senior loans to state-licensed operators in the cannabis industry, secured by real estate, equipment, receivables, licenses, and/or other assets of the borrowers to the extent permitted by applicable laws and regulations governing such borrowers. We also lend to and invest in companies or properties that are not related to the cannabis industry if they provide return characteristics consistent with our investment objective.

The Company is externally managed by Chicago Atlantic REIT Manager, LLC (the “Manager”), a Delaware limited liability company, pursuant to the terms of the management agreement dated May 1, 2021, as amended in October 2021, by and among the Company and the Manager (the "Management Agreement"). The Management Agreement had a three-year initial term that expired on April 30, 2024. After the initial term, the management agreement is automatically renewed for one-year periods unless the Company or the Manager elects not to renew in accordance with the terms of the Management Agreement. On April 30, 2024, the Management Agreement was automatically renewed. The Manager conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. For its services, the Manager is entitled to earn management fees and incentive compensation, both defined in and in accordance with the terms of the Management Agreement (Note 7). All of the Company’s investment decisions are made by the investment committee of the Manager, subject to oversight by the Company’s board of directors (the “Board”). The Manager is wholly-owned by Chicago Atlantic Group, LP. (the “Sponsor”).

Consolidated Statements of Cash Flows (Unaudited) - USD ($)

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Operating activities

Net Income (Loss)

$ 8,730,003

$ 10,692,349

Adjustments to reconcile net income to net cash provided by operating activities:

Accretion of deferred loan origination fees and other discounts

(477,756)

^[1]

(908,873)

^[2]

Paid-in-kind interest

(3,008,593)

^[1]

(2,256,228)

^[2]

Provision for current expected credit losses

380,279

96,119

Change in unrealized gain on debt securities, at fair value

75,604

Realized gain on debt securities, at fair value

(72,428)

Amortization of deferred debt issuance costs

90,915

167,304

Stock based compensation

531,293

138,335

Changes in operating assets and liabilities:

Other receivables and assets, net

77,288

(2,955,336)

(97,151)

(19,507)

Interest reserve

1,444,982

(1,648,129)

Related party payables

(296,790)

(127,389)

Related party receivables

(85,129)

(237,885)

Proceeds from the redemption of debt securities, at fair value

839,094

Management and incentive fees payable

(1,424,347)

(1,157,595)

Accounts payable and accrued expenses

210,608

(81,098)

Net cash provided by operating activities

6,917,872

1,702,067

Cash flows from investing activities

Issuance of and fundings of loans held for investment

(22,380,807)

(32,941,660)

Proceeds from sales of loans held for investment

13,399,712

Principal repayment of loans held for investment

3,663,452

44,858,834

Net cash (used in)/provided by investing activities

(18,717,355)

25,316,886

Cash flows from financing activities

Proceeds from sale of common stock

9,811,862

6,000,010

Proceeds from borrowings on revolving loan

28,000,000

28,500,000

Repayment of borrowings on revolving loan

(12,750,000)

(49,000,000)

Dividends paid to common shareholders

(13,866,656)

(13,486,186)

Payment of debt issuance costs

(49,738)

(2,988)

Payment of offering costs

(339,912)

(104,711)

Net cash (used in)/provided by financing activities

10,805,556

(28,093,875)

Net decrease in cash and cash equivalents

(993,927)

(1,074,922)

Cash and cash equivalents, beginning of period

7,898,040

5,715,827

Cash and cash equivalents, end of period

6,904,113

4,640,905

Supplemental disclosure of non-cash financing and investing activities

Interest reserve withheld from funding of loans

2,032,688

OID withheld from funding of loans held for investment

105,081

1,118,340

Subscription receivable from sale of common stock

4,472,690

Dividends declared and not yet paid

9,007,244

8,667,701

Transfer of loan held for investment to loan held for sale

13,399,712

Supplemental information:

Interest paid during the period

$ 1,786,333

$ 1,363,742

[1]	The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized paid-in-kind (“PIK”) interest, if applicable.
[2]	The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Debt securities, at fair value	$	-	$	842,269	$	-	$	842,269

Schedule of Carrying Values and Fair Values of the Company’s Financial Assets and Liabilities

As of March 31, 2024 and December 31, 2023, the carrying values and fair values of the Company’s financial assets and liabilities recorded at amortized cost are as follows:


		As of March 31,				As of December 31,
		2024				2023
	Level in Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Loans held for investment	3	$	375,844,314	$	373,256,778	$	353,640,610	$	351,952,876
Cash and cash equivalents	1		6,904,113		6,904,113		7,898,040		7,898,040
Interest receivable	2		926,852		926,852		1,004,140		1,004,140
Other receivables and assets, net	2		5,143,318		5,143,318		705,960		705,960
Related party receivables	2		192,354		192,354		107,225		107,225

Financial liabilities:
Revolving loan	2	$	81,250,000	$	80,863,975	$	66,000,000	$	65,633,408
Accounts payable and other liabilities	2		1,342,872		1,342,872		1,135,355		1,135,355
Interest reserve	2		2,519,871		2,519,871		1,074,889		1,074,889
Management and incentive fees payable	2		1,819,428		1,819,428		3,243,775		3,243,775
Related party payables	2		1,754,741		1,754,741		2,051,531		2,051,531
Dividend payable	2		9,007,244		9,007,244		13,866,656		13,866,656

Earnings Per Share (Details) - Schedule of Basic Earnings Per Common Share - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule Of Basic Earnings Per Common Share [Abstract]
Net income attributable to common stockholders	$ 8,730,003	$ 10,692,349
Divided by:
Basic weighted average shares of common stock outstanding	18,273,919	17,879,444
Diluted weighted average shares of common stock outstanding	18,640,492	17,960,103
Basic earnings per common share	$ 0.48	$ 0.6
Diluted earnings per common share	$ 0.47	$ 0.6

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

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

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Consolidated Balance Sheets - USD ($)

Mar. 31, 2024

Dec. 31, 2023

Assets

Loan held for investment - related party (Note 7)

$ 359,317,126

$ 337,238,122

16,527,188

16,402,488

^[1],[2]

375,844,314

353,640,610

Loans held for investment at carrying value, net

(5,356,018)

(4,972,647)

370,488,296

348,667,963

Cash and cash equivalents

6,904,113

7,898,040

Other receivables and assets, net

5,143,318

705,960

Related party receivables

926,852

1,004,140

192,354

107,225

Debt securities, at fair value

842,269

Total Assets

383,654,933

359,225,597

Liabilities

Revolving loan

81,250,000

66,000,000

Dividend payable

9,007,244

13,866,656

Related party payables

1,819,428

3,243,775

Management and incentive fees payable

1,754,741

2,051,531

Accounts payable and other liabilities

1,342,872

1,135,355

Interest reserve

2,519,871

1,074,889

Total Liabilities

97,694,156

87,372,206

Commitments and contingencies (Note 8)

Stockholders’ equity

Common stock, par value $0.01 per share, 100,000,000 shares authorized and 19,100,282 and 18,197,192 shares issued and outstanding, respectively

191,003

181,972

Additional paid-in-capital

291,858,521

277,483,092

Accumulated deficit

(6,088,747)

(5,811,673)

Total stockholders’ equity

285,960,777

271,853,391

Total liabilities and stockholders’ equity

$ 383,654,933

$ 359,225,597

[1]	Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.
[2]	Loan #9 placed on non-accrual status is included in risk rating category “4” and has a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024 and $1.5 million as of December 31, 2023.

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
Consolidated Statements of Income (Unaudited) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Revenues
Interest income	$ 15,343,667	$ 16,527,304
Interest expense	(2,104,050)	(1,618,296)
Net interest income	13,239,617	14,909,008
Expenses
Management and incentive fees, net	1,754,741	2,138,005
General and administrative expense	1,390,267	1,274,825
Professional fees	449,858	569,375
Stock based compensation	531,293	138,335
Provision for current expected credit losses	380,279	96,119
Total expenses	4,506,438	4,216,659
Change in unrealized gain on debt securities, at fair value	(75,604)
Realized gain on debt securities, at fair value	72,428
Net Income before income taxes	8,730,003	10,692,349
Income tax expense	0	0
Net Income	$ 8,730,003	$ 10,692,349
Earnings per common share:
Basic earnings per common share (in Dollars per share)	$ 0.48	$ 0.6
Diluted earnings per common share (in Dollars per share)	$ 0.47	$ 0.6
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in Shares)	18,273,919	17,879,444
Diluted weighted average shares of common stock outstanding (in Shares)	18,640,492	17,960,103

Debt (Details) - Schedule of Interest Expense Incurred During Period - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Interest Expense Incurred During Period [Abstract]
Interest expense	$ 2,007,050	$ 1,440,992
Unused fee expense	6,085	10,000
Amortization of deferred financing costs	90,915	167,304
Total interest expense	$ 2,104,050	$ 1,618,296

Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

10. EARNINGS PER SHARE

The following information sets forth the computations of basic earnings per common share for the three months ended March 31, 2024 and 2023, respectively:


	For the three months ended March 31,
	2024		2023
Net income attributable to common stockholders	$	8,730,003	$	10,692,349
Divided by:
Basic weighted average shares of common stock outstanding		18,273,919		17,879,444
Diluted weighted average shares of common stock outstanding		18,640,492		17,960,103
Basic earnings per common share	$	0.48	$	0.60
Diluted earnings per common share	$	0.47	$	0.60

There were no anti-dilutive shares excluded from the computations of earnings per common share for the three months ended March 31, 2024 and 2023.

Related Party Transactions (Details) - USD ($)			3 Months Ended		12 Months Ended
Related Party Transactions (Details) - USD ($)	May 01, 2023	Jan. 24, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Management Fee, Description			The Manager is entitled to receive 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, determined as of the last day of each such quarter; reduced by an amount equal to 50% of the pro rata amount of origination fees earned and paid to the Manager during the applicable quarter for loans that were originated on the Company’s behalf by the Manager or affiliates of the Manager (“Outside Fees”).
Outside fees amount			$ 16,071	$ 5,000
Incentive compensation			696,504	1,111,206
Related party tax expense due to affiliates current			3,600,000		$ 5,300,000
Bonuses accrued			800,000		$ 1,200,000
Assigned right amount			0	$ 0
Carrying value		$ 19,000,000	13,400,000
Purchase price		19,300,000
Selling price			14,200,000
Loan held investment			$ 16,500,000
Co-Investment in Loans [Member]
Related Party Transaction [Line Items]
Unpaid interest	$ 800,000	$ 300,000

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arr Modified Flag	false
Non Rule 10b5-1 Arr Modified Flag	false

Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt [Abstract]

Schedule of Interest Expense Incurred During Period

The following table reflects a summary of interest expense incurred during the three months ended March 31, 2024 and 2023.


	Three months ended March 31,
	2024		2023
Interest expense	$	2,007,050	$	1,440,992
Unused fee expense		6,085		10,000
Amortization of debt issuance costs		90,915		167,304
Total interest expense	$	2,104,050	$	1,618,296

Stockholders’ Equity

3 Months Ended

Mar. 31, 2024

Stockholders’ Equity [Abstract]

STOCKHOLDERS’ EQUITY

9. STOCKHOLDERS’ EQUITY

Common Stock

On February 15, 2023, the Company completed a registered direct offering of 395,779 shares of common stock at a price of $15.16 per share, raising net proceeds of approximately $6.0 million. The Company sold shares of common stock directly, without the use of underwriters or placement agents, to institutional investors registered pursuant to its effective shelf registration statement.

Equity Incentive Plan

The Company has established an equity incentive compensation plan (the “2021 Plan”). The Board authorized the adoption of the 2021 Plan and the Compensation Committee of the Board administers the 2021 Plan. The 2021 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. The 2021 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 restricted stock awards to participants in the 2021 Plan, but it may also grant any other type of award available under the 2021 Plan in the future. Persons eligible to receive awards under the 2021 Plan include the Company’s officers and employees of the Manager and its affiliates or officers and employees of the Company’s subsidiaries, if any, the members of the Board, and certain consultants and other service providers.

As of March 31, 2024 and December 31, 2023, the maximum number of shares of the Company’s common stock that may be delivered pursuant to awards under the 2021 Plan (the “Share Limit”) equals 8.50% of the issued and outstanding shares of the Company’s common stock on a fully-diluted basis following the completion of the IPO. Shares that are subject to or underlie awards that expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under the 2021 Plan will not be counted against the Share Limit and will again be available for subsequent awards under the 2021 Plan.

There were 0 and 417 shares forfeited during the three months ended March 31, 2024 and 2023, respectively. As individual awards and options become fully vested, stock-based compensation expense is adjusted to recognize actual forfeitures.

Shares that are exchanged by a participant or withheld by the Company as full or partial payment in connection with any award granted under the 2021 Plan, as well as any shares exchanged by a participant or withheld by the Company to satisfy tax withholding obligations related to any award granted under the 2021 Plan, will not be counted against the Share Limit and will again be available for subsequent awards under the 2021 Plan. To the extent that an award is settled in cash or a form other than shares, the shares that would have been delivered had there been no such cash or other settlement will not be counted against the Share Limit and will again be available for subsequent awards under the 2021 Plan.

Based on the closing market price of our common stock on March 31, 2024 and December 31, 2023, the aggregate intrinsic value of our restricted stock awards was as follows:


	As of March 31, 2024				As of December 31, 2023
	Outstanding		Vested		Outstanding		Vested
Aggregate intrinsic value	$	5,677,200	$	1,073,937	$	5,525,370	$	937,068

The following table summarizes the restricted stock activity for the Company’s directors and officers and employees of the Manager during the three months ended March 31, 2024 and 2023.


	Three months ended March 31, 2024			Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2023		366,647		$	14.86
Vested		(6,647	)	$	16.00
Unvested Balance at March 31, 2024		360,000		$	14.84


	Three months ended March 31, 2023			Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2022		80,984		$	15.71
Vested		(6,952	)	$	16.00
Forfeited		(417	)	$	16.00
Unvested Balance at March 31, 2023		73,615		$	15.68

Restricted stock compensation expense is based on the Company’s stock price at the date of the grant and is amortized over the vesting period. Forfeitures are recognized as they occur. The share-based compensation expense for the Company was $531,293 and $138,335 for the three months ended March 31, 2024 and 2023, respectively. The unamortized share-based compensation expense for the Company was approximately $4.0 million and $1.1 million as of March 31, 2024 and 2023, respectively, which the Company expects to recognize over the remaining weighted-average term of 1.9 years.

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

On June 20, 2023, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with BTIG, LLC, Compass Point Research & Trading, LLC and Oppenheimer & Co. Inc. (each a “Sales Agent” and together the “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 quarter ended March 31, 2024, the Company sold an aggregate of 896,443 shares of the Company’s common stock under the Sales Agreement at a weighted average price of $15.93 per share, generating net proceeds of approximately $13.9 million.

As of March 31, 2024, the shares of common stock sold pursuant to the registered direct offering in February 2023 and under the ATM Program are the only offerings that have been initiated under the Shelf Registration Statement.

The entire disclosure for equity.

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Schedule of Loans Held For Investment [Abstract]

Loans Held For Investment, Net (Details) - Schedule of Loans Held for Investment - USD ($)

3 Months Ended

12 Months Ended

Mar. 31, 2024

Dec. 31, 2023

Senior Term Loans, Outstanding Principal

^[1]

$ 377,576,334

$ 355,745,305

Senior Term Loans, Original Issue Discount

(1,732,020)

(2,104,695)

Senior Term Loans, Carrying Value

^[1]

$ 375,844,314

$ 353,640,610

Senior Term Loans, Weighted Average Remaining Life (Years)

^[2]

2 years

2 years 1 month 6 days

Current expected credit loss reserve, Outstanding Principal

^[1]

$ 0

Current expected credit loss reserve, Original Issue Discount

Current expected credit loss reserve, Carrying Value

^[1]

(5,356,018)

(4,972,647)

Total loans held at carrying value, net, Outstanding Principal

^[1]

377,576,334

355,745,305

Total loans held at carrying value, net, Original Issue Discount

(1,732,020)

(2,104,695)

Total loans held at carrying value, net, Carrying Value

^[1]

$ 370,488,296

$ 348,667,963

[1]	The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable.
[2]	Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2024 and December 31, 2023, respectively.

Fair Value Measurements (Details) - USD ($)	3 Months Ended	12 Months Ended
Fair Value Measurements (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 373,256,778	$ 351,952,876
Unrecognized holding losses gains	(2,587,536)	$ (1,687,734)
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	0
Financial liabilities measured at fair value	$ 0

Fair value of investment in security owned.

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The net change in the difference between the fair value and the carrying value, or in the comparative fair values, of derivative instruments, including options, swaps, futures, and forward contracts, held at each balance sheet date, that was included in earnings for the period.

Schedule of Changes in Loans Held at Carrying Value [Line Items]

Interest Receivable (Details) - Schedule of Summarizes the Interest Receivable - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Summarizes the Interest Receivable [Abstract]
Interest receivable	$ 895,852	$ 973,140
Unused fees receivable	31,000	31,000
Total interest receivable	$ 926,852	$ 1,004,140

Loans Held For Investment, Net (Details) - Schedule of Changes in Loans Held at Carrying Value - USD ($)

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

$ 348,667,963

^[1]

$ 335,332,599

^[2]

22,380,807

^[1]

32,941,660

^[2]

(3,663,452)

^[1]

(45,754,443)

^[2]

477,756

^[1]

908,873

^[2]

^[2],[3]

(13,399,712)

3,008,593

^[1]

2,256,228

^[2]

(383,371)

^[1]

(110,995)

^[2]

Schedule of Changes in Loans Held at Carrying Value [Line Items]

370,488,296

^[1]

312,174,210

^[2]

Principal [Member]

355,745,305

343,029,334

22,485,888

34,060,000

(3,663,452)

(45,754,443)

^[3]

(13,399,712)

3,008,593

2,256,228

Original Issue Discount [Member]

377,576,334

320,191,407

Schedule of Changes in Loans Held at Carrying Value [Line Items]

(2,104,695)

(3,755,796)

(105,081)

(1,118,340)

477,756

908,873

^[3]

Current expected credit loss reserve [Member]

(1,732,020)

(3,965,263)

Schedule of Changes in Loans Held at Carrying Value [Line Items]

(4,972,647)

(3,940,939)

^[3]

(383,371)

(110,995)

Schedule of Basic Earnings Per Common Share

$ (5,356,018)

$ (4,051,934)

[1]	The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized paid-in-kind (“PIK”) interest, if applicable.
[2]	The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable.
[3]	One loan was reclassified as held for sale from loans held for investment as the decision was made to sell the loan during the three months ended March 31, 2023 to a syndicate of co-lenders which includes a third party and two affiliates under common control with our Manager. The sale was executed on March 31, 2023 (Note 7).

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

The following information sets forth the computations of basic earnings per common share for the three months ended March 31, 2024 and 2023, respectively:


	For the three months ended March 31,
	2024		2023
Net income attributable to common stockholders	$	8,730,003	$	10,692,349
Divided by:
Basic weighted average shares of common stock outstanding		18,273,919		17,879,444
Diluted weighted average shares of common stock outstanding		18,640,492		17,960,103
Basic earnings per common share	$	0.48	$	0.60
Diluted earnings per common share	$	0.47	$	0.60

Interest Receivable (Tables)

3 Months Ended

Mar. 31, 2024

Interest Receivable [Abstract]

Schedule of Summarizes the Interest Receivable

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


	As of March 31, 2024		As of December 31, 2023
Interest receivable	$	895,852	$	973,140
Unused fees receivable		31,000		31,000
Total interest receivable	$	926,852	$	1,004,140

Schedule of aging analyses of past due loans

The following table presents aging analyses of past due loans by class as of March 31, 2024 and December 31, 2023, respectively:


	As of March 31, 2024
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (and accruing)		Total Past Due		Total Loans		Non- Accrual(2)
Interest receivable	$	926,852	$	-	$	-	$	-	$	-	$	926,852	$	-
Total	$	926,852	$	-	$	-	$	-	$	-	$	926,852	$	-


	As of December 31, 2023
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (and accruing)		Total Past Due		Total Loans		Non- Accrual(2)
Interest receivable	$	838,537	$	62,189	$	66,335	$	37,079	$	165,603	$	1,004,140	$	165,603
Total	$	838,537	$	62,189	$	66,335	$	37,079	$	165,603	$	1,004,140	$	165,603

(1)

Loans 1-30 days past due are included in the current loans. Amounts are presented on a gross and net basis, including the effects of any interest reserves for non-accrual loans.

On May 1, 2023, Loan #9 was placed on non-accrual status with an outstanding principal amount of approximately $16.3 million. As of March 31, 2024, Loan #9 has principal greater than 90 days past due, however there is $0 of accrued interest receivable relating to Loan #9.

Subsequent Events (Details) - USD ($)

1 Months Ended

3 Months Ended

Apr. 15, 2024

Apr. 01, 2024

May 07, 2024

Apr. 30, 2024

Mar. 31, 2024

^[1]

$ 401,257,040

Loan #3 [Member]

Subsequent Event [Member]

$ 15,900,000

Dividend price per share (in Dollars per share)

$ 6,000,000

$ 0.47

Payments of dividends

$ 9,000,000

Subsequent Event [Member] | Loan #6 [Member]

Subsequent Event [Member] | Loan #18 [Member]

Extended maturity date

May 31, 2024

Subsequent Event [Member] | Loan #21 [Member]

$ 400,000

Subsequent Event [Member] | Board [Member]

200,000

Stock issued during period, restricted stock award grants (in Shares)

24,054

Subsequent Event [Member] | Employees of Manager [Member]

Stock issued during period, restricted stock award grants (in Shares)

163,280

Revolving Credit Facility [Member] | Subsequent Event [Member]

Remaining availability amount

Net paydowns

500,000

Outstanding balance

80,800,000

$ 19,200,000

[1]	Total Commitment excludes future amounts to be advanced at sole discretion of the lender.

Interest Receivable (Details) - USD ($) $ in Millions	3 Months Ended
Interest Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2024	May 01, 2023
Interest Receivable [Abstract]
Loan placed on non-accrual status		$ 16.3
Accrued interest	$ 0.0

Loans Held For Investment, Net (Details) - Schedule of Loans Held at Carrying Value Based on Information

3 Months Ended

Mar. 31, 2024

USD ($)

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

$ 401,257,040

^[1]

377,576,334

(1,732,020)

$ 375,844,314

100.00%

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

19.40%

^[2]

Various [Member]

10/27/2022

^[3]

Oct. 30, 2026

^[4]

$ 30,000,000

^[1]

29,820,000

(579,713)

$ 29,240,287

7.80%

P+6.5% Cash (11)

^[5],[6]

I/O

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

17.40%

^[2]

Michigan [Member]

1/13/2022

^[3]

Dec. 31, 2024

^[4]

$ 35,891,667

^[1]

39,167,481

(60,915)

$ 39,106,565

10.40%

P+6.65% Cash, 4.25% PIK (17)

^[5],[8]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

18.00%

^[2]

Various One [Member]

3/25/2021

^[3],[9]

Nov. 29, 2024

^[4],[9]

$ 20,105,628

^[1],[9]

20,791,605

^[9]

(45,680)

^[9]

$ 20,745,924

^[9]

5.50%

^[9]

P+10.38% Cash, 2.75% PIK (7)

^[5],[9],[10]

P&I

^[7],[9]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

23.50%

^[2],[9]

Arizona [Member]

4/19/2021

^[3]

Apr. 16, 2024

^[4]

$ 14,240,129

^[1]

16,091,216

$ 16,091,216

4.30%

15% PIK (15)

^[5],[11]

I/O

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

30.50%

^[2]

Massachusetts [Member]

4/19/2021

^[3]

Apr. 30, 2025

^[4]

$ 3,500,000

^[1]

3,036,680

$ 3,036,680

0.80%

P+12.25% Cash (7)

^[5],[10]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

22.80%

^[2]

Michigan One [Member]

8/20/2021

^[3]

Apr. 15, 2024

^[4]

$ 6,000,000

^[1]

4,611,348

$ 4,611,348

1.20%

P+9% Cash (7)

^[5],[10]

P&I

^[7]

Illinois, Arizona [Member]

20.90%

^[2]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

8/24/2021

^[3]

Jun. 30, 2025

^[4]

$ 26,002,665

^[1]

20,663,292

(136,918)

$ 20,526,374

5.50%

P+6% Cash, 2% PIK (12)

^[5],[12]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

19.50%

^[2]

West Virginia [Member]

9/1/2021

^[3]

Sep. 01, 2024

^[4]

$ 9,500,000

^[1]

12,094,954

(26,697)

$ 12,068,257

3.20%

P+9.25% Cash, 2% PIK (8)

^[5],[13]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

25.10%

^[2]

Pennsylvania [Member]

9/3/2021

^[3],[14]

Jun. 30, 2024

^[4],[14]

$ 15,000,000

^[1],[14]

16,527,188

^[14]

$ 16,527,188

^[14]

4.40%

^[14]

P+10.75% Cash, 3% PIK (7)

^{[5],[10],[14]}

P&I

^[7],[14]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

16.30%

^[2],[14]

Maryland [Member]

9/30/2021

^[3]

Sep. 30, 2024

^[4]

$ 32,000,000

^[1]

33,478,944

(178,986)

$ 33,299,958

8.90%

P+8.75% Cash, 2% PIK (7)

^[5],[10]

I/O

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

22.00%

^[2]

Various Two [Member]

11/8/2021

^[3]

Oct. 31, 2024

^[4]

$ 20,000,000

^[1]

8,710,222

(36,770)

$ 8,673,452

2.30%

P+7% Cash (13)

^[5],[15]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

19.50%

^[2]

Michigan Two [Member]

11/22/2021

^[3]

Nov. 01, 2024

^[4]

$ 13,600,000

^[1]

13,279,539

(41,628)

$ 13,237,911

3.50%

P+6% Cash, 1.5% PIK (12)

^[5],[12]

I/O

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

19.50%

^[2]

Various Three[Member]

12/27/2021

^[3]

Dec. 27, 2026

^[4]

$ 5,000,000

^[1]

5,253,125

$ 5,253,125

1.40%

P+12.25% Cash, 2.5% PIK (9)

^[5],[16]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

23.20%

^[2]

Florida [Member]

12/30/2021

^[3]

Dec. 31, 2024

^[4]

$ 13,000,000

^[1]

4,232,500

(14,320)

$ 4,218,180

1.10%

P+9.25% Cash (7)

^[5],[10]

I/O

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

35.70%

^[2]

Florida One [Member]

1/18/2022

^[3]

Jan. 31, 2025

^[4]

$ 15,000,000

^[1]

14,550,000

(105,341)

$ 14,444,659

3.80%

P+4.75% Cash (11)

^[5],[6]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

14.80%

^[2]

Ohio [Member]

2/3/2022

^[3]

Feb. 28, 2025

^[4]

$ 22,448,992

^[1]

20,731,419

(72,670)

$ 20,658,749

5.50%

P+1.75% Cash, 5% PIK (12)

^[5],[12]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

16.40%

^[2]

Florida Two [Member]

3/11/2022

^[3]

Dec. 31, 2025

^[4]

$ 20,000,000

^[1]

19,696,007

(41,819)

$ 19,654,188

5.20%

11% Cash, 5% PIK

^[5]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

16.50%

^[2]

Missouri [Member]

5/9/2022

^[3]

May 30, 2025

^[4]

$ 17,000,000

^[1]

17,781,166

(64,682)

$ 17,716,484

4.70%

11% Cash, 2% PIK

^[5]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

14.70%

^[2]

Illinois [Member]

7/1/2022

^[3]

Jul. 29, 2026

^[4]

$ 9,000,000

^[1]

4,976,931

(51,377)

$ 4,925,554

1.30%

P+8.5% Cash, 3% PIK (9)

^[5],[16]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

27.00%

^[2]

Arizona One [Member]

3/27/2023

^[3]

Mar. 31, 2026

^[4]

$ 2,000,000

^[1]

1,820,000

(33,182)

$ 1,786,818

0.50%

P+7.5% Cash (14)

^[5],[17]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

18.90%

^[2]

Oregon [Member]

3/31/2023

^[3]

Sep. 27, 2026

^[4]

$ 1,000,000

^[1]

760,000

$ 760,000

0.20%

P+10.5% Cash (10)

^[5],[18]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

21.70%

^[2]

New york [Member]

8/1/2023

^[3]

Jun. 29, 2036

^[4]

$ 26,309,588

^[1]

24,834,254

$ 24,834,254

6.60%

15% Cash

^[5]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

16.60%

^[2]

Connecticut [Member]

8/31/2023

^[3]

Feb. 27, 2026

^[4]

$ 5,450,000

^[1]

5,450,000

(104,394)

$ 5,345,606

1.40%

14% Cash

^[5]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

19.10%

^[2]

Nebraska [Member]

8/15/2023

^[3]

Jun. 30, 2027

^[4]

$ 13,061,667

^[1]

13,061,667

$ 13,061,667

3.50%

P+8.75% Cash

^[5]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

19.00%

^[2]

Ohio One [Member]

9/13/2023

^[3]

Mar. 13, 2025

^[4]

$ 2,466,705

^[1]

2,466,706

$ 2,466,706

0.70%

15% Cash

^[5]

P&I

^[7]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

17.40%

^[2]

Illinois One [Member]

10/11/2023

^[3]

Oct. 09, 2026

^[4]

$ 2,000,000

^[1]

2,010,090

$ 2,010,090

0.50%

11.4% Cash, 1.5% PIK

^[5]

P&I

^[7]

Missouri, Arizona [Member]

14.80%

^[2]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

12/20/2023

^[3]

Dec. 31, 2026

^[4]

$ 15,000,000

^[1]

15,000,000

(136,926)

$ 14,863,074

4.00%

P+7.75% Cash (16)

^[5],[19]

I/O

^[7]

California, Arizona [Member]

18.10%

^[2]

Financing Receivable, before Allowance for Credit Loss, Maturity [Line Items]

1/3/2024

^[3]

May 03, 2026

^[4]

$ 6,680,000

^[1]

6,680,000

$ 6,680,000

1.80%

P+8.75% Cash

^[5]

I/O

^[7]

19.00%

^[2]

[1]	Total Commitment excludes future amounts to be advanced at sole discretion of the lender.
[2]	Estimated YTM, calculated on a weighted average principal basis, includes a variety of fees and features that affect the total yield, which may include, but is not limited to, OID, exit fees, prepayment fees, unused fees and contingent features. OID is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. The estimated YTM calculations require management to make estimates and assumptions, including, but not limited to, the timing and amounts of loan draws on delayed draw loans, the timing and collectability of exit fees, the probability and timing of prepayments and the probability of contingent features occurring. For example, certain credit agreements contain provisions pursuant to which certain PIK interest rates and fees earned by us under such credit agreements will decrease upon the satisfaction of certain specified criteria which we believe may improve the risk profile of the applicable borrower. To be conservative, we have not assumed any prepayment penalties or early payoffs in our estimated YTM calculation. Estimated YTM is based on current management estimates and assumptions, which may change. Actual results could differ from those estimates and assumptions.
[3]	All loans originated prior to April 1, 2021 were purchased from affiliated entities at fair value plus accrued interest on or subsequent to April 1, 2021. Loan numbering in the table above is maintained from origination for purposes of comparability and may not be sequential due to maturities, payoffs, or refinancings.
[4]	Certain loans are subject to contractual extension options and may be subject to performance based on other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein and certain borrowers may have the right to prepay with or without a contractual prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.
[5]	"P" = prime rate and depicts floating rate loans that pay interest at the prime rate plus a specific percentage; "PIK" = paid-in-kind interest; subtotal represents weighted average interest rate.
[6]	This Loan is subject to a prime rate floor of 6.25%
[7]	P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term.
[8]	This Loan is subject to a prime rate cap of 5.85%
[9]	The aggregate loan commitment to Loan #3 includes a $15.9 million initial commitment which has a base interest rate of 13.625%, 2.75% PIK and a second commitment of $4.2 million which has an interest rate of 15.00%, 2.00% PIK. The statistics presented reflect the weighted average of the terms under all advances for the total aggregate loan commitment.
[10]	This Loan is subject to a prime rate floor of 3.25%
[11]	This Loan is subject to a prime rate floor of 8.25%
[12]	This Loan is subject to a prime rate floor of 7.00%
[13]	This Loan is subject to a prime rate floor of 4.00%
[14]	As of May 1, 2023, Loan #9 was placed on non-accrual status and remains on non-accrual as of March 31, 2024. Loan #9 is included on the consolidated balance sheet as a loan held for investment – related party (Note 7).
[15]	This Loan is subject to a prime rate floor of 7.50%
[16]	This Loan is subject to a prime rate floor of 4.75%
[17]	This Loan is subject to a prime rate floor of 8.00%
[18]	This Loan is subject to a prime rate floor of 5.50%
[19]	This Loan is subject to a prime rate floor of 8.50%

Debt

3 Months Ended

Mar. 31, 2024

Debt [Abstract]

DEBT

6. DEBT

The Company's revolving credit facility (the “Revolving Loan”) had an original aggregate borrowing base of up to $10,000,000 and bore interest, payable in cash in arrears, at a per annum rate equal to the greater of (x) Prime Rate plus 1.00% and (y) 4.75%. The Company incurred debt issuance costs of $100,000 related to the origination of the Revolving Loan, which were capitalized and are subsequently being amortized through maturity. The maturity date of the Revolving Loan was the earlier of (i) February 12, 2023 and (ii) the date on which the Revolving Loan is terminated pursuant to terms in the Revolving Loan Agreement.

On February 27, 2023, CAL entered into an amendment to the Third Amendment and Restatement (the “Amendment”). The Amendment extended the contractual maturity date of the Revolving Loan until December 16, 2024 and the Company retained its option to extend the initial term for an additional one-year period, provided no events of default exist and the Company provides 365 days’ notice of the extension pursuant to the Amendment. No other material terms of the Revolving Loan were modified as a result of the execution of the Amendment. The Company incurred debt issuance costs of $2,988 related to the Amendment, which were capitalized and are subsequently amortized through maturity.

On June 30, 2023, CAL entered into a Fourth Amended and Restated Loan and Security Agreement (the “Fourth Amendment and Restatement”). The Fourth Amendment and Restatement increased the loan commitment from $92.5 million to $100.0 million. No other material terms of the Revolving Loan were modified as a result of the execution of the Fourth Amendment. The Company incurred debt issuance costs of $109,291 related to the Amendment, which were capitalized and are subsequently amortized through maturity.

On February 28, 2024, CAL entered into a Fifth Amended and Restated Loan and Security Agreement (the “Fifth Amendment and Restatement”). The Fifth Amendment and Restatement extended the contractual maturity date of the Revolving Loan until June 30, 2026, and expanded the existing accordion feature to permit aggregate loan commitments of up to $150.0 million. No other material terms of the Revolving Loan were modified as a result of the execution of the Fifth Amendment and Restatement. The Company incurred debt issuance costs of approximately $0.1 million related to the Fifth Amendment and Restatement, which were capitalized and will subsequently be amortized through maturity.

The Revolving Loan provides for certain affirmative covenants, including requiring us to deliver financial information and any notices of default, and conducting business in the normal course. Additionally, the Company must comply with certain financial covenants including: (1) maximum capital expenditures of $150,000, (2) maintaining a debt service coverage ratio greater than 1.35 to 1, and (3) maintaining a leverage ratio less than 1.50 to 1. As of March 31, 2024, the Company is in compliance with all financial covenants with respect to the Revolving Loan.

As of March 31, 2024 and December 31, 2023, unamortized debt issuance costs related to the Revolving Loan, including all amendments and amendments and restatements thereto, as applicable, of $325,415 and $366,592, respectively, are recorded in other receivables and assets, net on the consolidated balance sheets.

As of March 31, 2024, the Company had net borrowings of $81.3 million against the Revolving Loan. As of March 31, 2024, the Company had $18.7 million available under the Revolving Loan. Additionally, as of March 31, 2024, $160.2 million of loans held for investment, at principal, are pledged as collateral in the borrowing base of the Revolving Loan.

The following table reflects a summary of interest expense incurred during the three months ended March 31, 2024 and 2023.


	Three months ended March 31,
	2024		2023
Interest expense	$	2,007,050	$	1,440,992
Unused fee expense		6,085		10,000
Amortization of debt issuance costs		90,915		167,304
Total interest expense	$	2,104,050	$	1,618,296

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.

Reference 1: 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 2: 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 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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

Organization and Description of Business (Details)	3 Months Ended
Organization and Description of Business (Details)	Mar. 31, 2024
Organization and Description of Business [Line Items]
Least taxable income rate	90.00%

Stockholders’ Equity (Details) - Schedule of Restricted Stock Activity - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Restricted Stock Activity [Abstract]
Restricted stock activity, beginning	366,647	80,984
Grant Date Fair Value per Share, beginning	$ 14.86	$ 15.71
Restricted stock activity, Vested	(6,647)	(6,952)
Grant Date Fair Value per Share, Vested	$ 16	$ 16
Restricted stock activity, Forfeited		(417)
Grant Date Fair Value per Share, Forfeited		$ 16
Restricted stock activity, ending	360,000	73,615
Grant Date Fair Value per Share, ending	$ 14.84	$ 15.68

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS

Investment Activity

During the period from April 1, 2024 to May 7, 2024, we funded approximately $0.4 million to the borrower of Loan #18 and $0.2 million to the borrower of Loan #21.

In April 2024, we entered into an amendment to Loan #4, which extended the maturity date to May 17, 2024. No other terms of the loan were modified in connection with this amendment.

In April 2024, we entered into an amendment to Loan #6, which extended the maturity date to May 31, 2024. No other terms of the loan were modified in connection with this amendment.

In April 2024, we entered into an amendment to Loan #3, which extended the maturity date to June 14, 2024 for the second tranche of the credit facility which has a principal balance of $2.9 million. The remaining $17.9 million of principal retained its original maturity date of November 29, 2024. No other terms of the loan were modified in connection with this amendment.

In April 2024, we entered into a $6.0 million commitment with a new borrower. As of May 7, 2024, the Company has not funded this commitment.

Revolving Loan

During the period from April 1, 2024 through May 7, 2024, the Company had net paydowns of $0.5 million on the Revolving Loan. As of May 7, 2024, outstanding borrowings and remaining availability on the Revolving Loan were $80.8 million and $19.2 million, respectively.

Restricted Stock Awards

On April 1, 2024, restricted stock awards of 24,054 shares and 163,280 shares were granted to members of the Board and employees of the Manager, respectively. Upon vesting pursuant to the respective award agreements, the restricted stock awards are exchanged for an equal number of shares of the Company’s common stock.

Payment of Dividend

On April 15, 2024, the Company paid its regular quarterly dividend of $0.47 per common share relating to the first quarter of 2024 to stockholders of record as of the close of business on March 28, 2024. The total amount of the cash dividend payment was approximately $9.0 million.

Loans Held For Investment, Net (Details) - Schedule of Risk Rating	3 Months Ended
	Mar. 31, 2024
Risk Rating One [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rating	Very low risk
Risk Rating Two [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rating	Low risk
Risk Rating Three [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rating	Moderate/average risk
Risk Rating Four [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rating	High risk/potential for loss: a loan that has a risk of realizing a principal loss
Risk Rating Five [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Risk rating	Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]
Deduction paid percentage	90.00%
Percentage of distributes of taxable income	100.00%
Ordinary income percentage	85.00%
Capital gain net income, Percentage	95.00%
Excise tax percentage	4.00%
Distribution of net capital gains percentage	90.00%
Non-Deductible excise tax percentage	4.00%
Cash and cash equivalents	$ 6,904,113	$ 7,898,040

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 8,730,003	$ 10,692,349

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

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

Fair Value Measurements (Details) - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	Dec. 31, 2023 USD ($)
Financial assets:
Debt securities, at fair value	$ 842,269
Level 1 [Member]
Financial assets:
Debt securities, at fair value	0
Level 2 [Member]
Financial assets:
Debt securities, at fair value	842,269
Level 3 [Member]
Financial assets:
Debt securities, at fair value	$ 0

Dividends and Distributions (Details) - Schedule of Dividends Declared - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Regular cash dividend [Member]
Dividends and Distributions (Details) - Schedule of Dividends Declared [Line Items]
Record Date	Mar. 28, 2024	Mar. 31, 2023
Payment Date	Apr. 15, 2024	Apr. 14, 2023
Common Share Distribution Amount	$ 0.47	$ 0.47
Taxable Ordinary Income	$ 0.47	$ 0.47
Return of Capital (in Dollars)	$ 0	$ 0
Section 199A Dividends	$ 0.47	$ 0.47
Total cash dividend [Member]
Dividends and Distributions (Details) - Schedule of Dividends Declared [Line Items]
Common Share Distribution Amount	0.47	0.47
Taxable Ordinary Income	$ 0.47	$ 0.47
Return of Capital (in Dollars)	$ 0	$ 0
Section 199A Dividends	$ 0.47	$ 0.47

Interest Reserve (Details) - Schedule of Changes in Interest Reserves - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Schedule of Changes in Interest Reserves [Abstract]
Beginning reserves	$ 1,074,889	$ 1,868,193
New reserves	2,032,688	2,238,348
Reserves disbursed	(587,706)	(3,031,652)
Ending reserve	$ 2,519,871	$ 1,074,889

Stockholders’ Equity (Details) - USD ($)		3 Months Ended		12 Months Ended
Stockholders’ Equity (Details) - USD ($)	Feb. 15, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jun. 20, 2023
Stockholders’ Equity (Details) [Line Items]
Net proceeds from common stock issuance		$ 9,811,862	$ 6,000,010
Shares forfeited (in Shares)		0	417
Share-based compensation expense		$ 531,293	$ 138,335
Unamortized share-based compensation expense		$ 4,000,000	$ 1,100,000
Weighted average term		1 year 10 months 24 days
Offering cost					$ 75,000,000
Gross proceeds percentage		3.00%
At-the-Market Offering Program [Member]
Stockholders’ Equity (Details) [Line Items]
Price per share (in Dollars per share)		$ 15.93
Net proceeds from direct offering		$ 13,900,000
Sold an aggregate shares (in Shares)		896,443
2021 Equity Incentive Plan [Member]
Stockholders’ Equity (Details) [Line Items]
Issued and outstanding shares percentage		8.50%		8.50%
Common Stock [Member]
Stockholders’ Equity (Details) [Line Items]
Common stock shares (in Shares)		896,443
Common Stock [Member]
Stockholders’ Equity (Details) [Line Items]
Common stock shares (in Shares)	395,779
Price per share (in Dollars per share)	$ 15.16
Net proceeds from direct offering	$ 6,000,000

Consolidated Statements of Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock price per share	$ 0.47	$ 0.47

Interest Receivable (Details) - Schedule of Aging Analyses of Past Due Loans - USD ($)

Mar. 31, 2024

Dec. 31, 2023

$ 926,852

$ 1,004,140

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

926,852

1,004,140

Current Loans [Member]

^[1]

926,852

838,537

31-60 Days Past Due [Member]

^[1]

926,852

838,537

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

62,189

61 - 90 Days Past Due [Member]

62,189

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

66,335

90+ Days Past Due (and accruing) [Member]

66,335

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

37,079

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

37,079

Non-Accrual [Member]

^[2]

165,603

Interest Receivable (Details) - Schedule of aging analyses of past due loans [Line Items]

^[2]

165,603

Total Past Due [Member]

165,603

$ 165,603

[1]	Loans 1-30 days past due are included in the current loans. Amounts are presented on a gross and net basis, including the effects of any interest reserves for non-accrual loans.
[2]	On May 1, 2023, Loan #9 was placed on non-accrual status with an outstanding principal amount of approximately $16.3 million. As of March 31, 2024, Loan #9 has principal greater than 90 days past due, however there is $0 of accrued interest receivable relating to Loan #9.

Accounting Policies, by Policy (Policies)	3 Months Ended
Accounting Policies, by Policy (Policies)	Mar. 31, 2024
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes of the Company have been prepared on the accrual basis of accounting and in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Our consolidated financial statements present the financial position, results of operations, and cash flows of Chicago Atlantic Real Estate Finance, Inc., and its wholly owned consolidated subsidiary, Chicago Atlantic Lincoln, LLC. All intercompany accounts and transactions have been eliminated in consolidation. Accordingly, these financial statements may not contain all disclosures required by generally accepted accounting principles. Reference should be made to Note 2 of the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2023. In the opinion of the Company, all normal recurring adjustments have been made that are necessary to the fair statement of the results of operations and financial position as of and for the periods presented. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company’s cash held with financial institutions may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limits. The Company and the Manager seek to manage this credit risk relating to cash by monitoring the financial stability of the financial institutions and their ability to continue in business for the foreseeable future. Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short-term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and consolidated statements of cash flows, and represented $6.9 million and $7.9 million of total cash and cash equivalents as of March 31, 2024 and December 31, 2023, respectively.
Use of Estimates in the Preparation of Consolidated Financial Statements	Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of the 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 provision for current expected credit losses.
Revenue Recognition	Revenue Recognition Interest income on debt securities designated as trading securities is recognized on an accrual basis and is reported as interest receivable until collected. Interest income is accrued based on the outstanding face amount and the contractual terms of the securities. Original issue discount (“OID”), market discounts or premiums, if any, are recorded as an adjustment to the amortized cost and accreted or amortized as an adjustment to interest income using a method that approximates the effective interest method. Realized gains or losses on debt securities are measured by the difference between the net proceeds from the disposition and the amortized and/or accreted cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include loans charged off during the period, net of recoveries.
Income Taxes	Income Taxes The Company is a Maryland corporation and has elected to be taxed as a REIT under the Code, commencing with the taxable year ended December 31, 2021. The Company believes that it qualifies as a REIT and that its method of operations will enable it to continue to qualify as a REIT. However, no assurances can be given that the Company’s beliefs or expectations will be fulfilled, since qualification as a REIT depends on the Company satisfying numerous asset, income and distribution tests which depends, in part, on the Company’s operating results. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distributes annually to its stockholders at least 90% of the Company’s REIT taxable income prior to the deduction for dividends paid. To the extent that the Company distributes less than 100% of its REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), the Company will pay tax at regular corporate rates on that undistributed portion. Furthermore, if the Company distributes less than the sum of 1) 85% of its ordinary income for the calendar year, 2) 95% of its capital gain net income for the calendar year, and 3) any undistributed shortfall from its prior calendar year (the “Required Distribution”) to its stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then it is required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if the Company elects to retain any of its net capital gain for any tax year, it must notify its stockholders and pay tax at regular corporate rates on the retained net capital gain. The stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain and receive an income tax credit for such amount. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that the Company’s estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, the Company accrues excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. FASB ASC Topic 740, Income Taxes (“ASC 740”), prescribes a recognition threshold and measurement attribute for the consolidated financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are documented and supported for the taxable years ended December 31, 2023 and December 31, 2022. Based on the Company’s evaluation, there is no reserve for any uncertain income tax positions as of March 31, 2024. Accrued interest and penalties, if any, are included within accounts payable and other liabilities in the balance sheets.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires public entities to disclose significant expense categories and amounts for each reportable segment, along with information regarding the composition of "other segment items." Additionally, the guidance requires the disclosure of the title and position of the entity's Chief Operating Decision Maker (“CODM”), an explanation of how the CODM utilizes reported profit or loss measures to assess segment performance, and certain segment-related disclosures on an interim basis, which were previously required only annually. 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 adoption of this guidance is not expected to have a significant impact on our consolidated financial statements. The Company does not expect to early adopt and will add the necessary disclosures upon adoption. 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.

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

Financing Receivable, Allowance for Credit Loss [Line Items]

Stockholders’ Equity (Details) - Schedule of Restricted Stock Awards - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Schedule of Restricted Stock Awards [Abstract]
Aggregate intrinsic value ,Outstanding	$ 5,677,200	$ 5,525,370
Aggregate intrinsic value ,Vested	$ 1,073,937	$ 937,068

Consolidated Statements of Equity (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In-Capital	Accumulated Earnings(Deficit)
Balance at Dec. 31, 2022	$ 264,033,023	$ 176,859	$ 268,995,848	$ (5,139,684)
Balance (in Shares) at Dec. 31, 2022		17,685,952
Issuance of common stock in connection with initial public offering and concurrent private placement, net of offering costs, underwriting discounts and commissions	5,794,917	$ 3,958	5,790,959
Issuance of common stock in connection with initial public offering and concurrent private placement, net of offering costs, underwriting discounts and commissions (in Shares)		395,779
Stock-based compensation	138,335	$ 70	138,265
Stock-based compensation (in Shares)		6,952
Dividends declared on common shares	(8,535,296)			(8,535,296)
Net Income (Loss)	10,692,349			10,692,349
Balance at Mar. 31, 2023	$ 272,123,328	$ 180,887	274,925,072	(2,982,631)
Balance (in Shares) at Mar. 31, 2023	18,197,192	18,088,683
Balance at Dec. 31, 2023	$ 271,853,391	$ 181,972	277,483,092	(5,811,673)
Balance (in Shares) at Dec. 31, 2023		18,197,192
Issuance of common stock, net of offering costs	13,853,334	$ 8,964	13,844,203	167
Issuance of common stock, net of offering costs (in Shares)		896,443
Stock-based compensation	531,293	$ 67	531,226
Stock-based compensation (in Shares)		6,647
Dividends declared on common shares	(9,007,244)			(9,007,244)
Net Income (Loss)	8,730,003			8,730,003
Balance at Mar. 31, 2024	$ 285,960,777	$ 191,003	$ 291,858,521	$ (6,088,747)
Balance (in Shares) at Mar. 31, 2024	18,197,192	19,100,282

Loans Held For Investment, Net (Details) - Schedule of Carrying Value of Loans Held for Investment - USD ($)

Mar. 31, 2024

Dec. 31, 2023

^[1],[2]

$ 7,653,078

^[1],[2]

65,128,214

$ 54,606,866

^[1],[2]

152,915,100

149,948,641

^[1],[2]

150,147,921

149,085,103

Financing Receivable, Allowance for Credit Loss [Line Items]

^[1],[2]

375,844,314

353,640,610

Risk Ratin 1 [Member]

^[1],[2]

^[1],[2]

760,000

820,000

^[1],[2]

37,370,672

37,644,911

^[1],[2]

Financing Receivable, Allowance for Credit Loss [Line Items]

^[1],[2]

38,130,672

38,464,911

Risk Ratin 2 [Member]

^[1],[2]

973,078

^[1],[2]

61,901,509

51,320,161

^[1],[2]

76,437,863

107,007,422

^[1],[2]

46,368,517

46,792,941

Financing Receivable, Allowance for Credit Loss [Line Items]

^[1],[2]

185,680,968

205,120,524

Risk Ratin 3 [Member]

^[1],[2]

6,680,000

^[1],[2]

2,466,705

^[1],[2]

39,106,565

5,296,308

^[1],[2]

59,092,743

58,829,717

Financing Receivable, Allowance for Credit Loss [Line Items]

^[1],[2]

107,346,013

66,592,730

Risk Ratin 4 [Member]

^[1],[2]

^[1],[2]

^[1],[2]

^[1],[2]

44,686,661

43,462,445

Financing Receivable, Allowance for Credit Loss [Line Items]

^[1],[2]

44,686,661

43,462,445

Risk Ratin 5 [Member]

^[1],[2]

^[1],[2]

^[1],[2]

^[1],[2]

RELATED PARTY TRANSACTIONS

^[1],[2]

$ 0

[1]	Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.
[2]	Loan #9 placed on non-accrual status is included in risk rating category “4” and has a reserve for current expected credit losses of approximately $1.3 million as of March 31, 2024 and $1.5 million as of December 31, 2023.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2024
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes of the Company have been prepared on the accrual basis of accounting and in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Our consolidated financial statements present the financial position, results of operations, and cash flows of Chicago Atlantic Real Estate Finance, Inc., and its wholly owned consolidated subsidiary, Chicago Atlantic Lincoln, LLC. All intercompany accounts and transactions have been eliminated in consolidation. Accordingly, these financial statements may not contain all disclosures required by generally accepted accounting principles. Reference should be made to Note 2 of the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2023. In the opinion of the Company, all normal recurring adjustments have been made that are necessary to the fair statement of the results of operations and financial position as of and for the periods presented. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Cash and Cash Equivalents The Company’s cash held with financial institutions may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limits. The Company and the Manager seek to manage this credit risk relating to cash by monitoring the financial stability of the financial institutions and their ability to continue in business for the foreseeable future. Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short-term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and consolidated statements of cash flows, and represented $6.9 million and $7.9 million of total cash and cash equivalents as of March 31, 2024 and December 31, 2023, respectively. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of the 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 provision for current expected credit losses. Revenue Recognition Interest income on debt securities designated as trading securities is recognized on an accrual basis and is reported as interest receivable until collected. Interest income is accrued based on the outstanding face amount and the contractual terms of the securities. Original issue discount (“OID”), market discounts or premiums, if any, are recorded as an adjustment to the amortized cost and accreted or amortized as an adjustment to interest income using a method that approximates the effective interest method. Realized gains or losses on debt securities are measured by the difference between the net proceeds from the disposition and the amortized and/or accreted cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include loans charged off during the period, net of recoveries. Income Taxes The Company is a Maryland corporation and has elected to be taxed as a REIT under the Code, commencing with the taxable year ended December 31, 2021. The Company believes that it qualifies as a REIT and that its method of operations will enable it to continue to qualify as a REIT. However, no assurances can be given that the Company’s beliefs or expectations will be fulfilled, since qualification as a REIT depends on the Company satisfying numerous asset, income and distribution tests which depends, in part, on the Company’s operating results. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distributes annually to its stockholders at least 90% of the Company’s REIT taxable income prior to the deduction for dividends paid. To the extent that the Company distributes less than 100% of its REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), the Company will pay tax at regular corporate rates on that undistributed portion. Furthermore, if the Company distributes less than the sum of 1) 85% of its ordinary income for the calendar year, 2) 95% of its capital gain net income for the calendar year, and 3) any undistributed shortfall from its prior calendar year (the “Required Distribution”) to its stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then it is required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if the Company elects to retain any of its net capital gain for any tax year, it must notify its stockholders and pay tax at regular corporate rates on the retained net capital gain. The stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain and receive an income tax credit for such amount. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that the Company’s estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, the Company accrues excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. FASB ASC Topic 740, Income Taxes (“ASC 740”), prescribes a recognition threshold and measurement attribute for the consolidated financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are documented and supported for the taxable years ended December 31, 2023 and December 31, 2022. Based on the Company’s evaluation, there is no reserve for any uncertain income tax positions as of March 31, 2024. Accrued interest and penalties, if any, are included within accounts payable and other liabilities in the balance sheets. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires public entities to disclose significant expense categories and amounts for each reportable segment, along with information regarding the composition of "other segment items." Additionally, the guidance requires the disclosure of the title and position of the entity's Chief Operating Decision Maker (“CODM”), an explanation of how the CODM utilizes reported profit or loss measures to assess segment performance, and certain segment-related disclosures on an interim basis, which were previously required only annually. 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 adoption of this guidance is not expected to have a significant impact on our consolidated financial statements. The Company does not expect to early adopt and will add the necessary disclosures upon adoption. 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

3 Months Ended

Mar. 31, 2024

7. 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 initial term of our Management Agreement is for three years and shall continue until May 1, 2024. After the initial term, our Management Agreement shall automatically renew every year for an additional one-year period, unless we or our Manager elect not to renew. Our Management Agreement may be terminated by us or our Manager under certain specified circumstances. On April 30, 2024, the Management Agreement was automatically renewed.

The Manager is entitled to receive 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, determined as of the last day of each such quarter; reduced by an amount equal to 50% of the pro rata amount of origination fees earned and paid to the Manager during the applicable quarter for loans that were originated on the Company’s behalf by the Manager or affiliates of the Manager (“Outside Fees”). For the three months ended March 31, 2024 and 2023, the Base Management Fee payable was reduced by Outside Fees in the amount of $16,071 and $5,000, respectively.

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 will pay 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, 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 members of the Compensation Committee of the Board, each of whom are Independent Directors, and approved by a majority of the members of the Compensation Committee. Incentive compensation for the three months ended March 31, 2024 and 2023 was $696,504 and $1,111,206 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. We reimburse our Manager or its affiliates, as applicable, for the Company’s fair and equitable allocable share of the compensation, including annual base salary, bonus, any related withholding taxes and employee benefits, paid to (i) subject to review by the Compensation Committee of the Board, the Manager’s personnel serving as an officer of the Company, based on the percentage of his or her time spent devoted to the Company’s affairs and (ii) other corporate finance, tax, accounting, internal audit, legal, risk management, operations, compliance, and other non-investment personnel of the Manager and its affiliates who spend all or a portion of their time managing the Company’s affairs, with the allocable share of the compensation of such personnel described in this clause (ii) being as reasonably determined by the Manager to appropriately reflect the amount of time spent devoted by such personnel to our affairs.

The following table summarizes the related party fees and expenses incurred by the Company and amounts payable to the Manager for the three months ended March 31, 2024 and 2023.


	For the three months ended March 31,
	2024			2023
Affiliate Payments
Management fees earned	$	1,074,308		$	1,031,799
Less: Outside Fees earned		(16,071	)		(5,000	)
Base management fees, net		1,058,237			1,026,799
Incentive fees		696,504			1,111,206
Total management and incentive fees earned		1,754,741			2,138,005
General and administrative expenses reimbursable to Manager		1,237,790			1,176,376
Total	$	2,992,531		$	3,314,381

General administrative expenses reimbursable to the Manager are included in the related party payable line item of the consolidated balance sheets as of March 31, 2024 and December 31, 2023. Total amounts payable to the Manager as of March 31, 2024 and

December 31, 2023 were approximately $3.6 million and $5.3 million, respectively, which included bonuses accrued of $0.8 million and $1.2 million which are not reimbursed until paid in cash by the Manager.

Co-Investment in Loans

From time to time, the Company may co-invest with other investment vehicles managed by its affiliates, in accordance with the Manager’s co-investment allocation policies. The Company is not obligated to provide, nor has it provided, any financial support to the other managed investment vehicles. As such, the Company’s risk is limited to the carrying value of its investment in any such loan. As of March 31, 2024 and December 31, 2023, 21 and 20 of the Company’s loans were co-invested by affiliates of the Company, respectively.

Certain syndicated co-investments originated by affiliates of the Manager may include other consideration, generally in the form of warrants or other equity interests. Prior to, or concurrent with, the origination of the investment, the Company may elect to assign the right (the “Assigned Right”) to the equity consideration to an affiliate, in exchange for an additional upfront fee in an amount equal to the fair value of the equity consideration on a pro-rata basis. There were no sales of Assigned Rights for the three month periods ended March 31, 2024 and 2023.

Loan transactions with related parties

On January 24, 2023, the Company purchased a senior secured loan from an affiliate under common control with our Manager. The purchase price of approximately $19.3 million was approved by the audit committee of the Board. The fair value approximated the carrying value of the loan of $19.0 million, plus accrued and unpaid interest through the purchase date of $0.3 million.

On March 31, 2023, the Company sold a senior secured loan to a syndicate of co-lenders, including a third party and two affiliates under common control with our Manager. The total selling price of approximately $14.2 million was approved by the audit committee of the Board. The fair value approximated the carrying value of the loan of $13.4 million plus accrued unpaid interest of $0.8 million through the sale date.

Loan held for investment – related party

As of May 1, 2023, Loan #9 was placed on non-accrual status for borrower's breach of certain non-financial covenants and obligations under the loan agreement. The borrower subsequently failed to make contractual principal and interest payments due for the months of May and June 2023. On June 20, 2023, the Administrative Agent to Loan #9 (the “Agent”, a related party) issued an acceleration notice notifying the borrower of the Agent’s intention to exercise all rights and remedies under the credit documents and requested immediate payment of all amounts outstanding thereunder on behalf of the lenders.

The Agent subsequently pursued a Uniform Commercial Code (“UCC”) sale of the membership interests of the borrower’s subsidiaries which were pledged as collateral. On August 10, 2023, the Agent was the highest bidder in a public auction of the membership interests and took ownership of the membership interests. The Agent intends to sell the assets in satisfaction of the loan for the benefit of the lenders.

As described in Note 3, Loan #9 remains on non-accrual status and the Company will continue to cease further recognition of income until such events of default are cured or obligations are repaid. As of March 31, 2024, Loan #9 is held on the consolidated balance sheet as a loan held for investment – related party with a carrying value of approximately $16.5 million.

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.

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Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

Loans Held for Investment, Net - Summary of Geography Concentration of Loans Held for Investment (Details) - USD ($)

3 Months Ended

12 Months Ended

Mar. 31, 2024

Dec. 31, 2023

$ 377,576,334

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

100.00%

Michigan [Member]

$ 39,167,481

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

10.40%

Maryland [Member]

$ 33,478,944

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

8.90%

Florida [Member]

$ 4,232,500

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

1.10%

Ohio [Member]

$ 20,731,419

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

5.50%

Illinois [Member]

$ 4,976,931

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

1.30%

Missouri [Member]

$ 17,781,166

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

4.70%

Arizona [Member]

$ 16,091,216

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

4.30%

New york [Member]

$ 24,834,254

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

6.60%

Pennsylvania [Member]

^[1]

$ 16,527,188

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[1]

4.40%

Nebraska [Member]

$ 13,061,667

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

3.50%

Massachusetts [Member]

$ 3,036,680

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

0.80%

West Virginia [Member]

$ 12,094,954

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

3.20%

Connecticut [Member]

$ 5,450,000

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

1.40%

Oregon [Member]

$ 760,000

Credit Quality Indicators [Member]

0.20%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 377,576,334

$ 355,745,305

Credit Quality Indicators [Member] | Michigan [Member]

100.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 57,058,369

$ 56,466,635

Credit Quality Indicators [Member] | Maryland [Member]

15.00%

16.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 54,209,643

$ 53,907,352

Credit Quality Indicators [Member] | Florida [Member]

14.00%

15.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 47,748,013

$ 48,815,066

Credit Quality Indicators [Member] | Ohio [Member]

13.00%

14.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 32,495,778

$ 27,902,362

Credit Quality Indicators [Member] | Illinois [Member]

9.00%

8.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 26,502,449

$ 25,599,133

Credit Quality Indicators [Member] | Missouri [Member]

7.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 32,781,166

$ 25,191,575

Credit Quality Indicators [Member] | Arizona [Member]

9.00%

7.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 25,262,329

$ 24,466,609

Credit Quality Indicators [Member] | New york [Member]

7.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 24,834,254

$ 22,611,938

Credit Quality Indicators [Member] | Pennsylvania [Member]

7.00%

6.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 21,782,997

$ 21,674,160

Credit Quality Indicators [Member] | Nebraska [Member]

6.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 13,061,667

Credit Quality Indicators [Member] | Massachusetts [Member]

3.00%

4.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 11,107,621

$ 12,308,310

Credit Quality Indicators [Member] | West Virginia [Member]

3.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 12,094,954

$ 11,706,059

Credit Quality Indicators [Member] | California [Member]

3.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 6,680,000

$ 0

Credit Quality Indicators [Member] | Nevada [Member]

2.00%

0.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 5,747,094

$ 5,764,439

Credit Quality Indicators [Member] | Connecticut [Member]

2.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 5,450,000

Credit Quality Indicators [Member] | Oregon [Member]

1.00%

2.00%

Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]

^[2]

$ 760,000

$ 820,000

Schedule of Changes in Interest Reserves

0.00%

[1]	As of May 1, 2023, Loan #9 was placed on non-accrual status and remains on non-accrual as of March 31, 2024. Loan #9 is included on the consolidated balance sheet as a loan held for investment – related party (Note 7).
[2]	The principal balance of the loans not secured by real estate collateral are included in the jurisdiction representing the principal place of business.

Loans Held For Investment, Net (Details) - Schedule of Activity Related to the CECL Reserve for Outstanding Balances - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Loans Held For Investment, Net (Details) - Schedule of Activity Related to the CECL Reserve for Outstanding Balances [Line Items]
Balance	$ 4,975,739	$ 4,035,354
Provision for current expected credit losses	380,279	96,119
Balance	5,356,018	4,131,473
Outstanding [Member]
Loans Held For Investment, Net (Details) - Schedule of Activity Related to the CECL Reserve for Outstanding Balances [Line Items]
Balance	4,972,647	3,940,939
Provision for current expected credit losses	383,371	110,995
Balance	5,356,018	4,051,934
Unfunded [Member]
Loans Held For Investment, Net (Details) - Schedule of Activity Related to the CECL Reserve for Outstanding Balances [Line Items]
Balance	3,092	94,415
Provision for current expected credit losses	(3,092)	(14,876)
Balance		$ 79,539

Commitments and Contingencies (Details) - Schedule of Unfunded Commitments on Existing Loans - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Commitments and Contingencies (Details) - Schedule of Unfunded Commitments on Existing Loans [Line Items]
Total original loan commitments	$ 401,257,040	$ 378,849,998
Less: drawn commitments	(401,257,040)	(371,349,998)
Total undrawn commitments	$ 0	$ 7,500,000

Interest Reserve (Tables)

3 Months Ended

Mar. 31, 2024

Interest Reserve [Abstract]

As of March 31, 2024 and December 31, 2023, the Company had two and one loans, respectively, that included a prepaid interest reserve.

The following table presents changes in interest reserves as of March 31, 2024 and December 31, 2023, respectively:


	March 31, 2024			December 31, 2023
Beginning reserves	$	1,074,889		$	1,868,193
New reserves		2,032,688			2,238,348
Reserves disbursed		(587,706	)		(3,031,652	)
Ending reserve	$	2,519,871		$	1,074,889

Debt (Details)				3 Months Ended
Debt (Details)	Mar. 31, 2024 USD ($)	Feb. 28, 2024 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Debt (Details) [Line Items]
Debt issuance cost under of credit facility arrangement	$ 100,000		$ 2,988	$ 100,000
Unamortized debt issuance costs	$ 325,415			325,415	$ 366,592
Net borrowings				81,300,000
Revolving loan				18,700,000
Maximum capital expenditures				150,000
Amortized Cost [Member]
Debt (Details) [Line Items]
Amortized cost				$ 160,200,000
Minimum [Member]
Debt (Details) [Line Items]
Revolving loan commitment amount			92,500,000
Debt service coverage ratio				1.35
Minimum [Member] \| Prime Rate [Member]
Debt (Details) [Line Items]
Line of credit interest rate	1.00%
Maximum [Member]
Debt (Details) [Line Items]
Revolving loan commitment amount			100,000,000
Leverage ratio				1.5
Maximum [Member] \| Prime Rate [Member]
Debt (Details) [Line Items]
Line of credit interest rate	4.75%
Revolving Credit Facility [Member]
Debt (Details) [Line Items]
Line of credit borrowing base	$ 10,000,000			$ 10,000,000
Debt issuance cost under of credit facility arrangement		$ 100,000	$ 109,291
Debt, description				Additionally, the Company must comply with certain financial covenants including: (1) maximum capital expenditures of $150,000, (2) maintaining a debt service coverage ratio greater than 1.35 to 1, and (3) maintaining a leverage ratio less than 1.50 to 1. As of March 31, 2024, the Company is in compliance with all financial covenants with respect to the Revolving Loan.
Revolving Credit Facility [Member] \| Extended Maturity [Member]
Debt (Details) [Line Items]
Contractual maturity date		Jun. 30, 2026
Revolving Credit Facility [Member] \| Maximum [Member]
Debt (Details) [Line Items]
Revolving loan commitment amount		$ 150,000,000

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS

GAAP requires disclosure of fair value information about financial and nonfinancial assets and liabilities, whether or not recognized in the financial statements, for which it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows using market yields, or other valuation methodologies. Any changes to the valuation methodology will be reviewed by the Company’s management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while the Company anticipates that the valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial and nonfinancial assets and liabilities could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of the measurement date, which may fall within periods of market dislocation, during which price transparency may be reduced.

Recurring Fair Value Measurements

There were no financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2024. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Debt securities, at fair value	$	-	$	842,269	$	-	$	842,269

Financial Assets and Liabilities Not Measured at Fair Value

As of March 31, 2024 and December 31, 2023, the carrying values and fair values of the Company’s financial assets and liabilities recorded at amortized cost are as follows:


		As of March 31,				As of December 31,
		2024				2023
	Level in Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Loans held for investment	3	$	375,844,314	$	373,256,778	$	353,640,610	$	351,952,876
Cash and cash equivalents	1		6,904,113		6,904,113		7,898,040		7,898,040
Interest receivable	2		926,852		926,852		1,004,140		1,004,140
Other receivables and assets, net	2		5,143,318		5,143,318		705,960		705,960
Related party receivables	2		192,354		192,354		107,225		107,225

Financial liabilities:
Revolving loan	2	$	81,250,000	$	80,863,975	$	66,000,000	$	65,633,408
Accounts payable and other liabilities	2		1,342,872		1,342,872		1,135,355		1,135,355
Interest reserve	2		2,519,871		2,519,871		1,074,889		1,074,889
Management and incentive fees payable	2		1,819,428		1,819,428		3,243,775		3,243,775
Related party payables	2		1,754,741		1,754,741		2,051,531		2,051,531
Dividend payable	2		9,007,244		9,007,244		13,866,656		13,866,656

Our loans are held for investment and are substantially secured by real estate, equipment, licenses and other assets of the borrowers to the extent permitted by the applicable laws and the regulations governing such borrowers. The aggregate fair value of the Company’s loan portfolio was $373,256,778 and $351,952,876, with gross unrecognized holding losses of $2,587,536 and $1,687,734 as of March 31, 2024 and December 31, 2023, respectively. The fair values, which are classified as Level 3 in the fair value hierarchy, are estimated using discounted cash flow models based on current market inputs for similar types of arrangements. The primary sensitivity in these models is based on the selection of appropriate discount rates. Fluctuations in these assumptions could result in different estimates of fair value.

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.

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage - USD ($)

Mar. 31, 2024

Dec. 31, 2023

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

^[1]

$ 375,844,314

$ 353,640,610

Fixed-rate [Member]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

^[1]

87,340,471

69,121,616

Floating-rate [Member]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

^[1]

288,503,843

284,518,994

1.0x [Member]

1.0x [Member] | Fixed-rate [Member]

^[1]

128,477,384

106,788,789

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

1.0x [Member] | Floating-rate [Member]

^[1]

2,466,705

2,466,706

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

^[1]

126,010,679

104,322,083

1.0 - 1.25 [member]

1.0 - 1.25 [member] | Fixed-rate [Member]

^[1]

56,583,089

35,491,887

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

1.0 - 1.25 [member] | Floating-rate [Member]

17,716,484

^[1]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

^[1]

38,866,605

35,491,887

1.25x - 1.5x [Member]

1.25x - 1.5x [Member] | Fixed-rate [Member]

^[1]

114,130,883

87,770,913

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

1.25x - 1.5x [Member] | Floating-rate [Member]

^[1]

44,488,442

49,041,867

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

^[1]

69,642,441

38,729,046

1.50x - 1.75x [Member]

1.50x - 1.75x [Member] | Fixed-rate [Member]

33,009,413

^[1]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

1.50x - 1.75x [Member] | Floating-rate [Member]

17,613,043

^[1]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

15,396,370

^[1]

1.75x - 2.0x [Member]

1.75x - 2.0x [Member] | Fixed-rate [Member]

^[1]

20,658,750

5,296,308

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

1.75x - 2.0x [Member] | Floating-rate [Member]

20,658,750

^[1]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

5,296,308

^[1]

> 2.0x [Member]

> 2.0x [Member] | Fixed-rate [Member]

^[1]

55,994,208

85,283,300

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

> 2.0x [Member] | Floating-rate [Member]

2,010,090

^[1]

Loans Held For Investment, Net (Details) - Schedule of Real Estate Collateral Coverage [Line Items]

Commitments and Contingencies Disclosure [Abstract]

^[1]

$ 53,984,118

$ 85,283,300

[1]	Real estate collateral coverage is calculated based upon most recent third-party appraised values. The Company generally obtains new appraisal of all material real estate collateral at least once annually.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

COMMITMENTS AND CONTINGENCIES

8. COMMITMENTS AND CONTINGENCIES

Off-Balance Sheet Arrangements

Off-balance sheet commitments may consist of unfunded commitments on delayed draw term loans. The Company does not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured investment vehicles, special purpose entities, or variable interest entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Further, the Company has not guaranteed any obligations of unconsolidated entities or entered into any commitment to provide additional funding to any such entities. As of March 31, 2024 and December 31, 2023, the Company had the following unfunded commitments on existing loans.


	As of March 31, 2024			As of December 31, 2023
Total original loan commitments	$	401,257,040		$	378,849,998
Less: drawn commitments	$	(401,257,040	)	$	(371,349,998	)
Total undrawn commitments	$	—		$	7,500,000

Refer to “Note 3 - Loans Held for Investment, Net” for further information regarding the CECL Reserve attributed to unfunded commitments. Total original loan commitments includes the impact of principal payments received since origination of the loan and future amounts to be advanced at sole discretion of the lender.

The following table summarizes our material commitments as of March 31, 2024:


	Total		2024		2025		2026		2027		2028		Thereafter
Undrawn commitments	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Revolving loan (1)		81,250,000		-		-		81,250,000		-		-		-
Total	$	81,250,000	$	-	$	-	$	81,250,000	$	-	$	-	$	-

Other Contingencies

The Company from time to time may be a party to litigation in the normal course of business. As of March 31, 2024, the Company is not aware of any legal claims that could materially impact its business, financial condition, or results of operations.

The Company’s ability to grow or maintain its business depends, in part, on state laws pertaining to the cannabis industry. New laws that are adverse to the Company’s portfolio companies 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 and adversely affect its 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, provide consent to allow the borrower to sell the real estate to a third party, institute a foreclosure proceeding to have the real estate sold or evict the tenant, have the cannabis operations removed from the property and take title to the underlying real estate, each of which may result in the Company realizing a loss on the transaction.

Dividends and Distributions (Tables)

3 Months Ended

Mar. 31, 2024

Dividends and Distributions [Abstract]

Schedule of Dividends Declared

The following table summarizes the Company’s dividends declared during the three months ended March 31, 2024 and 2023.


	Record Date	Payment Date	Common Share Distribution Amount		Taxable Ordinary Income		Return of Capital		Section 199A Dividends
Regular cash dividend	3/28/2024	4/15/2024	$	0.47	$	0.47	$	-	$	0.47
Total cash dividend			$	0.47	$	0.47	$	-	$	0.47


	Record Date	Payment Date	Common Share Distribution Amount		Taxable Ordinary Income		Return of Capital		Section 199A Dividends
Regular cash dividend	3/31/2023	4/14/2023	$	0.47	$	0.47	$	-	$	0.47
Total cash dividend			$	0.47	$	0.47	$	-	$	0.47

Interest Receivable

3 Months Ended

Mar. 31, 2024

Interest Receivable [Abstract]

INTEREST RECEIVABLE

4. INTEREST RECEIVABLE

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


	As of March 31, 2024		As of December 31, 2023
Interest receivable	$	895,852	$	973,140
Unused fees receivable		31,000		31,000
Total interest receivable	$	926,852	$	1,004,140

The following table presents aging analyses of past due loans by class as of March 31, 2024 and December 31, 2023, respectively:


	As of March 31, 2024
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (and accruing)		Total Past Due		Total Loans		Non- Accrual(2)
Interest receivable	$	926,852	$	-	$	-	$	-	$	-	$	926,852	$	-
Total	$	926,852	$	-	$	-	$	-	$	-	$	926,852	$	-


	As of December 31, 2023
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (and accruing)		Total Past Due		Total Loans		Non- Accrual(2)
Interest receivable	$	838,537	$	62,189	$	66,335	$	37,079	$	165,603	$	1,004,140	$	165,603
Total	$	838,537	$	62,189	$	66,335	$	37,079	$	165,603	$	1,004,140	$	165,603

(1)

Loans 1-30 days past due are included in the current loans. Amounts are presented on a gross and net basis, including the effects of any interest reserves for non-accrual loans.

(2)

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 03, 2024
Document Information [Line Items]
Entity Registrant Name	CHICAGO ATLANTIC REAL ESTATE FINANCE, INC.
Trading Symbol	REFI
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		19,100,282
Amendment Flag	false
Entity Central Index Key	0001867949
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Bankruptcy Proceedings, Reporting Current	true
Entity Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-41123
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	86-3125132
Entity Address, Address Line One	1680 Michigan Avenue
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Miami Beach
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33139
City Area Code	(312)
Local Phone Number	809-7002
Title of 12(b) Security	Common Stock, $0.01 par value per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Related Party Transactions (Details) - Schedule of Summarizes The Related Party Fees and Expenses - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Summarizes the Related Party Fees and Expenses [Abstract]
Management fees earned	$ 1,074,308	$ 1,031,799
Less: Outside Fees earned	(16,071)	(5,000)
Base management fees, net	1,058,237	1,026,799
Incentive fees	696,504	1,111,206
Total management and incentive fees earned	1,754,741	2,138,005
General and administrative expenses reimbursable to Manager	1,237,790	1,176,376
Total	$ 2,992,531	$ 3,314,381

Income Tax (Details) - USD ($)	3 Months Ended
Income Tax (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Income Tax [Abstract]
Income tax, description	To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute annually to our stockholders at least 90% of our REIT taxable income prior to the deduction for dividends paid. To the extent that we distribute less than 100% of our REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), we will pay tax at regular corporate rates on that undistributed portion. Furthermore, if we distribute less than the sum of 1) 85% of our ordinary income for the calendar year, 2) 95% of our capital gain net income for the calendar year, and 3) any undistributed shortfall from our prior calendar year (the “Required Distribution”) to our stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then we are required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if we elect to retain any of our net capital gain for any tax year, we must notify our stockholders and pay tax at regular corporate rates on the retained net capital gain. Our stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax.
Income tax provision	$ 0	$ 0

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