☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 85-1807125 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value per share | AFCG | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ | Smaller reporting company | ☒ | Emerging growth company | ☒ |
Class | Outstanding at | ||||
Common stock, $0.01 par value per share |
As of | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Loans held for investment at fair value (cost of $92,808,827 and $74,913,157 at March 31, 2022 and December 31, 2021, respectively, net) | $ | 95,072,832 | $ | 77,096,319 | ||||
Debt securities available for sale held at fair value (cost of $0 and $16,050,000 at March 31, 2022 and December 31, 2021, respectively) | 0 | 15,881,250 | ||||||
Loans held for investment at carrying value, net | 265,151,482 | 257,163,496 | ||||||
Loan receivable at carrying value, net | 2,279,324 | 2,530,588 | ||||||
Current expected credit loss reserve | (3,390,676 | ) | (2,431,558 | ) | ||||
Loans held for investment at carrying value and loan receivable at carrying value, net of current expected credit loss reserve | 264,040,130 | 257,262,526 | ||||||
Cash and cash equivalents | 63,615,179 | 109,246,048 | ||||||
Receivable for loans and securities sold | 26,500,000 | 0 | ||||||
Interest receivable | 4,235,265 | 4,412,938 | ||||||
Prepaid expenses and other assets | 604,177 | 949,279 | ||||||
Total assets | $ | 454,067,583 | $ | 464,848,360 | ||||
Liabilities | ||||||||
Interest reserve | $ | 607,163 | $ | 4,782,271 | ||||
Accrued interest | 2,409,723 | 991,840 | ||||||
Due to affiliate | 23,122 | 0 | ||||||
Dividends payable | 10,858,617 | 8,221,406 | ||||||
Current expected credit loss reserve | 629,188 | 683,177 | ||||||
Accrued management and incentive fees | 3,847,213 | 2,823,044 | ||||||
Accrued direct administrative expenses | 906,717 | 1,324,457 | ||||||
Accounts payable and other liabilities | 1,615,812 | 1,528,980 | ||||||
Senior notes payable, net | 96,659,635 | 96,572,656 | ||||||
Line of credit payable to affiliate, net | 0 | 74,845,355 | ||||||
Total liabilities | 117,557,190 | 191,773,186 | ||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, par value $0.01 per share, 10,000 shares authorized at March 31, 2022 and December 31, 2021 and 125 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 1 | 1 | ||||||
Common stock, par value $0.01 per share, 50,000,000 and 25,000,000 shares authorized at March 31, 2022 and December 31, 2021, respectively, and 19,742,940 and 16,442,812 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 196,784 | 163,866 | ||||||
Additional paid-in-capital | 338,102,982 | 274,172,934 | ||||||
Accumulated other comprehensive income (loss) | 0 | (168,750 | ) | |||||
Accumulated (deficit) earnings | (1,789,374 | ) | (1,092,877 | ) | ||||
Total stockholders’ equity | 336,510,393 | 273,075,174 | ||||||
Total liabilities and stockholders’ equity | $ | 454,067,583 | $ | 464,848,360 |
As of | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Loans held for investment at fair value (cost of $93,454,875 and $74,913,157 at September 30, 2022 and December 31, 2021, respectively, net) | $ | 94,076,146 | $ | 77,096,319 | |||||||
Debt securities available for sale held at fair value (cost of $16,050,000 at December 31, 2021) | — | 15,881,250 | |||||||||
Loans held for investment at carrying value, net | 339,164,030 | 257,163,496 | |||||||||
Loan receivable at carrying value, net | 2,220,466 | 2,530,588 | |||||||||
Current expected credit loss reserve | (5,466,194) | (2,431,558) | |||||||||
Loans held for investment at carrying value and loan receivable at carrying value, net of current expected credit loss reserve | 335,918,302 | 257,262,526 | |||||||||
Cash and cash equivalents | 36,319,623 | 109,246,048 | |||||||||
Interest receivable | 4,442,680 | 4,412,938 | |||||||||
Prepaid expenses and other assets | 563,984 | 949,279 | |||||||||
Total assets | $ | 471,320,735 | $ | 464,848,360 | |||||||
Liabilities | |||||||||||
Interest reserve | $ | 6,126,430 | $ | 4,782,271 | |||||||
Accrued interest | 2,395,833 | 991,840 | |||||||||
Due to affiliate | 17,640 | — | |||||||||
Dividends payable | 11,403,840 | 8,221,406 | |||||||||
Current expected credit loss reserve | 688,676 | 683,177 | |||||||||
Accrued management and incentive fees | 3,824,735 | 2,823,044 | |||||||||
Accrued direct administrative expenses | 1,351,666 | 1,324,457 | |||||||||
Accounts payable and other liabilities | 1,131,406 | 1,528,980 | |||||||||
Senior notes payable, net | 96,964,872 | 96,572,656 | |||||||||
Line of credit payable to affiliate, net | — | 74,845,355 | |||||||||
Total liabilities | 123,905,098 | 191,773,186 | |||||||||
Commitments and contingencies (Note 10) | |||||||||||
Shareholders’ equity | |||||||||||
Preferred stock, par value $0.01 per share, 10,000 shares authorized at September 30, 2022 and December 31, 2021 and 125 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 1 | 1 | |||||||||
Common stock, par value $0.01 per share, 50,000,000 and 25,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively, and 20,364,000 and 16,442,812 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 203,640 | 163,866 | |||||||||
Additional paid-in-capital | 348,700,927 | 274,172,934 | |||||||||
Accumulated other comprehensive income (loss) | — | (168,750) | |||||||||
Accumulated (deficit) earnings | (1,488,931) | (1,092,877) | |||||||||
Total shareholders’ equity | 347,415,637 | 273,075,174 | |||||||||
Total liabilities and shareholders’ equity | $ | 471,320,735 | $ | 464,848,360 |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue | ||||||||
Interest income | $ | 18,635,853 | $ | 4,685,005 | ||||
Interest expense | (1,700,115 | ) | 0 | |||||
Net interest income | 16,935,738 | 4,685,005 | ||||||
Expenses | ||||||||
Management and incentive fees, net (less rebate of $387,493 and $237,743, respectively) | 3,847,213 | 876,662 | ||||||
General and administrative expenses | 1,144,444 | 462,518 | ||||||
Stock-based compensation | 990,023 | 1,599,115 | ||||||
Professional fees | 399,368 | 135,453 | ||||||
Total expenses | 6,381,048 | 3,073,748 | ||||||
Provision for current expected credit losses | (905,129 | ) | (66,100 | ) | ||||
Realized gains (losses) on sales of investments, net | 450,000 | 0 | ||||||
Change in unrealized gains (losses) on loans at fair value, net | 80,843 | (144,402 | ) | |||||
Net income before income taxes | 10,180,404 | 1,400,755 | ||||||
Income tax expense | 18,284 | 0 | ||||||
Net income | $ | 10,162,120 | $ | 1,400,755 | ||||
Earnings per common share: | ||||||||
Basic earnings per common share (in dollars per share) | $ | 0.53 | $ | 0.20 | ||||
Diluted earnings per common share (in dollars per share) | $ | 0.52 | $ | 0.19 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic weighted average shares of common stock outstanding (in shares) | 19,319,993 | 7,144,670 | ||||||
Diluted weighted average shares of common stock outstanding (in shares) | 19,591,472 | 7,485,048 |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Net income | $ | 10,162,120 | $ | 1,400,755 | ||||
Other comprehensive income (loss): | ||||||||
Reversal of unrealized loss to recognized loss on debt securities available for sale held at fair value | 168,750 | 0 | ||||||
Total other comprehensive income (loss) | 168,750 | 0 | ||||||
Total comprehensive income | $ | 10,330,870 | $ | 1,400,755 |
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||
Preferred | Common Stock | Additional Paid-In | Accumulated Other Comprehensive | Accumulated Earnings | Total Stockholders’ | |||||||||||||||||||||||
Stock | Shares | Amount | Capital | Income (Loss) | (Deficit) | Equity | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | 1 | 16,442,812 | $ | 163,866 | $ | 274,172,934 | $ | (168,750 | ) | $ | (1,092,877 | ) | $ | 273,075,174 | |||||||||||||
Issuance of common stock, net of offering cost | 0 | 3,291,832 | 32,918 | 62,940,025 | 0 | 0 | 62,972,943 | |||||||||||||||||||||
Stock-based compensation | 0 | 8,296 | 0 | 990,023 | 0 | 0 | 990,023 | |||||||||||||||||||||
Dividends declared on common shares ($0.55 per share) | 0 | - | 0 | 0 | 0 | (10,858,617 | ) | (10,858,617 | ) | |||||||||||||||||||
Other comprehensive income (loss) | 0 | - | 0 | 0 | 168,750 | 0 | 168,750 | |||||||||||||||||||||
Net income | 0 | - | 0 | 0 | 0 | 10,162,120 | 10,162,120 | |||||||||||||||||||||
Balance at March 31, 2022 | $ | 1 | 19,742,940 | $ | 196,784 | $ | 338,102,982 | $ | 0 | $ | (1,789,374 | ) | $ | 336,510,393 |
Three months ended March 31, 2021 | ||||||||||||||||||||||||||||
Preferred | Common Stock | Additional Paid-In | Accumulated Other Comprehensive | Accumulated Earnings | Total Stockholders’ | |||||||||||||||||||||||
Stock | Shares | Amount | Capital | Income (Loss) | (Deficit) | Equity | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1 | 6,179,392 | $ | 61,794 | $ | 91,068,197 | $ | 0 | $ | 517,720 | $ | 91,647,712 | |||||||||||||||
Issuance of common stock, net of offering cost | 0 | 7,187,485 | 71,875 | 123,837,414 | 0 | 0 | 123,909,289 | |||||||||||||||||||||
Stock-based compensation | 0 | 0 | 0 | 1,599,115 | 0 | 0 | 1,599,115 | |||||||||||||||||||||
Dividends declared on common shares ($0.36 per share) | 0 | - | 0 | 0 | 0 | (2,224,866 | ) | (2,224,866 | ) | |||||||||||||||||||
Net income | 0 | - | 0 | 0 | 0 | 1,400,755 | 1,400,755 | |||||||||||||||||||||
Balance at March 31, 2021 | $ | 1 | 13,366,877 | $ | 133,669 | $ | 216,504,726 | $ | 0 | $ | (306,391 | ) | $ | 216,332,005 |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Operating activities: | ||||||||
Net income | $ | 10,162,120 | $ | 1,400,755 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Provision for current expected credit losses | 905,129 | 66,100 | ||||||
Realized (gains) losses on sales of investments, net | (450,000 | ) | 0 | |||||
Change in unrealized (gains) losses on loans at fair value, net | (80,843 | ) | 144,402 | |||||
Accretion of deferred loan original issue discount and other discounts | (3,965,878 | ) | (707,751 | ) | ||||
Amortization of deferred financing costs - revolving credit facility | 50,982 | 0 | ||||||
Amortization of offering costs - senior notes | 161,979 | 0 | ||||||
Stock-based compensation | 990,023 | 1,599,115 | ||||||
Payment-in-kind interest | (1,618,761 | ) | (559,004 | ) | ||||
Changes in operating assets and liabilities | ||||||||
Interest reserve | (4,175,108 | ) | (82,266 | ) | ||||
Interest receivable | 177,673 | (278,012 | ) | |||||
Prepaid expenses and other assets | 373,765 | 67,971 | ||||||
Accrued interest | 1,417,883 | 0 | ||||||
Accrued management and incentive fees, net | 1,024,169 | 654,535 | ||||||
Accrued direct administrative expenses | (417,740 | ) | (185,104 | ) | ||||
Accounts payable and other liabilities | 109,954 | 250,044 | ||||||
Net cash provided by (used in) operating activities | 4,665,347 | 2,370,785 | ||||||
Cash flows from investing activities: | ||||||||
Issuance of and fundings on loans | (50,463,213 | ) | (7,096,075 | ) | ||||
Proceeds from sales of Assigned Rights | 0 | 103,302 | ||||||
Principal repayment of loans | 20,415,460 | 107,717 | ||||||
Net cash provided by (used in) investing activities | (30,047,753 | ) | (6,885,056 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from sale of common stock | 63,939,722 | 127,003,125 | ||||||
Payment of offering costs - equity offering | (966,779 | ) | (3,093,836 | ) | ||||
Dividends paid to common stockholders | (8,221,406 | ) | (2,224,866 | ) | ||||
Repayments on the line of credit | (75,000,000 | ) | 0 | |||||
Net cash provided by (used in) financing activities | (20,248,463 | ) | 121,684,423 | |||||
Net increase (decrease) in cash and cash equivalents | (45,630,869 | ) | 117,170,152 | |||||
Cash and cash equivalents, beginning of period | 109,246,048 | 9,623,820 | ||||||
Cash and cash equivalents, end of period | $ | 63,615,179 | $ | 126,793,972 | ||||
Supplemental disclosure of non-cash activity: | ||||||||
Interest reserve withheld from funding of loans | $ | 0 | $ | 2,000,000 | ||||
OID withheld from funding of loans | $ | 1,067,675 | $ | 1,967,596 | ||||
Sale of Assigned Rights | $ | 0 | $ | 1,104,914 | ||||
Change in other comprehensive income (loss) during the period | $ | 168,750 | $ | 0 | ||||
Dividends declared and not yet paid | $ | 10,858,617 | $ | 0 | ||||
Receivable in connection with sale of loan | $ | 10,600,000 | $ | 0 | ||||
Receivable in connection with sale of securities | $ | 15,900,000 | $ | 0 | ||||
Supplemental information: | ||||||||
Interest paid during the period | $ | 69,271 | $ | 0 | ||||
Income taxes paid during the period | $ | 0 | $ | 0 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Interest income | $ | 19,785,583 | $ | 10,616,538 | $ | 60,072,643 | $ | 24,050,062 | |||||||||||||||
Interest expense | (1,644,088) | — | (5,091,207) | — | |||||||||||||||||||
Net interest income | 18,141,495 | 10,616,538 | 54,981,436 | 24,050,062 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Management and incentive fees, net (less rebate of $432,426, $256,989, $1,307,969 and $677,439, respectively) | 3,824,735 | 2,542,936 | 11,873,516 | 5,498,469 | |||||||||||||||||||
General and administrative expenses | 1,050,932 | 858,663 | 3,372,813 | 2,028,046 | |||||||||||||||||||
Stock-based compensation | 114,062 | 51,429 | 1,221,482 | 1,662,001 | |||||||||||||||||||
Professional fees | 324,846 | 396,147 | 1,017,525 | 726,194 | |||||||||||||||||||
Total expenses | 5,314,575 | 3,849,175 | 17,485,336 | 9,914,710 | |||||||||||||||||||
Provision for current expected credit losses | (541,958) | (660,612) | (3,040,135) | (1,372,498) | |||||||||||||||||||
Realized gains (losses) on sales of investments, net | — | 400,000 | 450,000 | 400,000 | |||||||||||||||||||
Change in unrealized (losses) gains on loans at fair value, net | (637,279) | 1,423,929 | (1,561,890) | 796,368 | |||||||||||||||||||
Net income before income taxes | 11,647,683 | 7,930,680 | 33,344,075 | 13,959,222 | |||||||||||||||||||
Income tax expense | 167,164 | — | 349,763 | — | |||||||||||||||||||
Net income | $ | 11,480,519 | $ | 7,930,680 | $ | 32,994,312 | $ | 13,959,222 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic earnings per common share (in dollars per share) | $ | 0.57 | $ | 0.48 | $ | 1.68 | $ | 1.13 | |||||||||||||||
Diluted earnings per common share (in dollars per share) | $ | 0.57 | $ | 0.47 | $ | 1.67 | $ | 1.10 | |||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic weighted average shares of common stock outstanding (in shares) | 20,019,760 | 16,402,984 | 19,687,730 | 12,368,977 | |||||||||||||||||||
Diluted weighted average shares of common stock outstanding (in shares) | 20,112,033 | 16,776,648 | 19,780,003 | 12,742,641 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 11,480,519 | $ | 7,930,680 | $ | 32,994,312 | $ | 13,959,222 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Reversal of unrealized loss to recognized loss on debt securities available for sale held at fair value | — | — | 168,750 | — | |||||||||||||||||||
Total other comprehensive income (loss) | — | — | 168,750 | — | |||||||||||||||||||
Total comprehensive income | $ | 11,480,519 | $ | 7,930,680 | $ | 33,163,062 | $ | 13,959,222 |
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In- Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 1 | 19,857,872 | $ | 197,933 | $ | 339,568,041 | $ | — | $ | (1,565,610) | $ | 338,200,365 | ||||||||||||||||||||||||||||
Issuance of common stock, net of offering costs | — | 506,466 | 5,065 | 9,018,824 | — | — | 9,023,889 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | (338) | 642 | 114,062 | — | — | 114,704 | ||||||||||||||||||||||||||||||||||
Dividends declared on common shares ($0.56 per share) | — | — | — | — | — | (11,403,840) | (11,403,840) | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 11,480,519 | 11,480,519 | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | 1 | 20,364,000 | $ | 203,640 | $ | 348,700,927 | $ | — | $ | (1,488,931) | $ | 347,415,637 |
Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In- Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 1 | 16,116,877 | $ | 161,169 | $ | 269,061,069 | $ | — | $ | (765,517) | $ | 268,456,722 | ||||||||||||||||||||||||||||
Issuance of common stock, net of offering cost | — | 269,650 | 2,697 | 5,035,825 | — | — | 5,038,522 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 56,285 | — | 51,429 | — | — | 51,429 | ||||||||||||||||||||||||||||||||||
Dividends declared on common shares ($0.43 per share) | — | — | — | — | — | (7,070,409) | (7,070,409) | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 7,930,680 | 7,930,680 | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 1 | 16,442,812 | $ | 163,866 | $ | 274,148,323 | $ | — | $ | 94,754 | $ | 274,406,944 |
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In- Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 1 | 16,442,812 | $ | 163,866 | $ | 274,172,934 | $ | (168,750) | $ | (1,092,877) | $ | 273,075,174 | ||||||||||||||||||||||||||||
Issuance of common stock, net of offering costs | — | 3,913,230 | 39,694 | 73,306,511 | — | — | 73,346,205 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 7,958 | 80 | 1,221,482 | — | — | 1,221,562 | ||||||||||||||||||||||||||||||||||
Dividends declared on common shares ($1.67 per share) | — | — | — | — | — | (33,382,866) | (33,382,866) | ||||||||||||||||||||||||||||||||||
Dividends declared on preferred shares ($60 per share) | — | — | — | — | — | (7,500) | (7,500) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 168,750 | — | 168,750 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 32,994,312 | 32,994,312 | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | 1 | 20,364,000 | $ | 203,640 | $ | 348,700,927 | $ | — | $ | (1,488,931) | $ | 347,415,637 |
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In- Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1 | 6,179,392 | $ | 61,794 | $ | 91,068,197 | $ | — | $ | 517,720 | $ | 91,647,712 | ||||||||||||||||||||||||||||
Issuance of common stock, net of offering costs | — | 10,263,420 | 102,072 | 181,418,125 | — | — | 181,520,197 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 1,662,001 | — | — | 1,662,001 | ||||||||||||||||||||||||||||||||||
Dividends declared on common shares ($1.17 per share) | — | — | — | — | — | (14,374,688) | (14,374,688) | ||||||||||||||||||||||||||||||||||
Dividends declared on preferred shares ($60 per share) | — | — | — | — | — | (7,500) | (7,500) | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 13,959,222 | 13,959,222 | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 1 | 16,442,812 | $ | 163,866 | $ | 274,148,323 | $ | — | $ | 94,754 | $ | 274,406,944 |
Nine months ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | 32,994,312 | $ | 13,959,222 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Provision for current expected credit losses | 3,040,135 | 1,372,498 | |||||||||
Realized (gains) losses on sale of investments, net | (450,000) | (400,000) | |||||||||
Change in unrealized losses (gains) on loans at fair value, net | 1,561,890 | (796,368) | |||||||||
Accretion of deferred loan original issue discount and other discounts | (9,710,278) | (4,038,816) | |||||||||
Amortization of deferred financing costs | 714,471 | — | |||||||||
Stock-based compensation | 1,221,482 | 1,662,001 | |||||||||
Payment-in-kind interest | (5,051,007) | (2,787,847) | |||||||||
Changes in operating assets and liabilities | |||||||||||
Interest receivable | (29,742) | (1,507,427) | |||||||||
Prepaid expenses and other assets | 217,685 | (319,140) | |||||||||
Interest reserve | 894,159 | (2,521,923) | |||||||||
Accrued interest | 1,403,993 | — | |||||||||
Accrued management and incentive fees, net | 1,001,691 | 2,320,808 | |||||||||
Accrued direct administrative expenses | 27,209 | 296,040 | |||||||||
Accounts payable and other liabilities | (379,934) | 366,696 | |||||||||
Net cash provided by (used in) operating activities | 27,456,066 | 7,605,744 | |||||||||
Cash flows from investing activities: | |||||||||||
Issuance of and fundings on loans | (127,248,748) | (156,345,116) | |||||||||
Proceeds from sales of Assigned Rights | — | 2,313,130 | |||||||||
Proceeds from sales of loans | 10,600,000 | 10,400,000 | |||||||||
Sale of available-for-sale debt securities | 15,900,000 | — | |||||||||
Principal repayment of loans | 32,227,904 | 22,168,395 | |||||||||
Net cash provided by (used in) investing activities | (68,520,844) | (121,463,591) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from sale of common stock | 75,057,650 | 185,501,295 | |||||||||
Payment of offering costs - equity offering | (1,711,365) | (3,981,098) | |||||||||
Dividends paid to common and preferred shareholders | (30,207,932) | (7,311,779) | |||||||||
Repayment on the line of credit | (75,000,000) | — | |||||||||
Net cash provided by (used in) financing activities | (31,861,647) | 174,208,418 | |||||||||
Net (decrease) increase in cash and cash equivalents | (72,926,425) | 60,350,571 | |||||||||
Cash and cash equivalents, beginning of period | 109,246,048 | 9,623,820 | |||||||||
Cash and cash equivalents, end of period | $ | 36,319,623 | $ | 69,974,391 | |||||||
Supplemental disclosure of non-cash activity: | |||||||||||
Interest reserve withheld from funding of loans | $ | 450,000 | $ | 9,450,468 | |||||||
OID withheld from funding of loans | $ | 5,607,675 | $ | 12,391,624 | |||||||
Loans funded from amounts due to affiliate | $ | — | $ | 9,549,625 | |||||||
Change in other comprehensive income (loss) during the period | $ | 168,750 | $ | — | |||||||
Dividends declared and not yet paid | $ | 11,403,840 | $ | — | |||||||
Supplemental information: | |||||||||||
Interest paid during the period | $ | 2,972,743 | $ | — | |||||||
Income taxes paid during the period | $ | 41,287 | $ | — |
3. LOANS HELD FOR INVESTMENT AT FAIR VALUE |
As of March 31, 2022 | ||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years) (3) | |||||||||||||
Senior term loans | $ | 95,072,832 | $ | 92,808,827 | $ | 95,618,815 | 2.0 | |||||||||
Total loans held at fair value | $ | 95,072,832 | $ | 92,808,827 | $ | 95,618,815 | 2.0 |
As of September 30, 2022 | |||||||||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years) (3) | ||||||||||||||||||||
Senior term loans | $ | 94,076,146 | $ | 93,454,875 | $ | 95,575,523 | 1.5 | ||||||||||||||||
Total loans held at fair value | $ | 94,076,146 | $ | 93,454,875 | $ | 95,575,523 | 1.5 |
As of December 31, 2021 | |||||||||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years) (3) | ||||||||||||||||||||
Senior term loans | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 | ||||||||||||||||
Total loans held at fair value | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 |
As of December 31, 2021 | ||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years) (3) | |||||||||||||
Senior term loans | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 | |||||||||
Total loans held at fair value | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | |||||||||||||
Total loans held at fair value at December 31, 2021 | $ | 77,630,742 | $ | (2,717,584 | ) | $ | 2,183,161 | $ | 77,096,319 | |||||||
Change in unrealized gains (losses) on loans at fair value, net | 0 | 0 | 80,843 | 80,843 | ||||||||||||
New fundings | 17,285,000 | (429,275 | ) | 0 | 16,855,725 | |||||||||||
Accretion of original issue discount | 0 | 336,872 | 0 | 336,872 | ||||||||||||
PIK interest | 703,073 | 0 | 0 | 703,073 | ||||||||||||
Total loans held at fair value at March 31, 2022 | $ | 95,618,815 | $ | (2,809,987 | ) | $ | 2,264,004 | $ | 95,072,832 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | ||||||||||||||||||||
Total loans held at fair value at December 31, 2021 | $ | 77,630,742 | $ | (2,717,584) | $ | 2,183,161 | $ | 77,096,319 | |||||||||||||||
Change in unrealized (losses) gains on loans at fair value, net | — | — | (1,561,890) | (1,561,890) | |||||||||||||||||||
New fundings | 18,737,988 | (479,276) | — | 18,258,712 | |||||||||||||||||||
Loan repayments | (1,960,000) | — | — | (1,960,000) | |||||||||||||||||||
Loan amortization payments | (1,089,776) | — | — | (1,089,776) | |||||||||||||||||||
Accretion of original issue discount | — | 1,076,212 | — | 1,076,212 | |||||||||||||||||||
PIK interest | 2,256,569 | — | — | 2,256,569 | |||||||||||||||||||
Total loans held at fair value at September 30, 2022 | $ | 95,575,523 | $ | (2,120,648) | $ | 621,271 | $ | 94,076,146 |
Collateral Location | Collateral Type (1) | Fair Value (2) | Carrying Value (3) | Outstanding Principal (3) | Interest Rate | Maturity Date (4) | Payment Terms (5) | ||||||||||||||||||||||||||||||||||||||||
Private Co. A | AZ, MI, MD, MA | C, D | $ | 78,444,211 | $ | 78,055,662 | $ | 79,772,976 | 15.5 | % | (6) | 5/8/2024 | P/I | ||||||||||||||||||||||||||||||||||
Public Co. A | NV | C | 1,174,066 | 1,198,639 | 1,198,639 | 15.0 | % | (7) | 9/30/2023 | I/O | |||||||||||||||||||||||||||||||||||||
Private Co. B | MI | C, D | 14,457,869 | 14,200,574 | 14,603,908 | 18.7 | % | (8) | 9/1/2023 | P/I | |||||||||||||||||||||||||||||||||||||
Total loans held at fair value | $ | 94,076,146 | $ | 93,454,875 | $ | 95,575,523 |
Collateral Location | Collateral Type (1) | Fair Value (2) | Carrying Value (3) | Outstanding Principal (3) | Interest Rate | Maturity Date (4) | Payment Terms (5) | |||||||||||||||||||||
Private Co. A | AZ, MI, MD, MA | C, D | $ | 79,312,373 | $ | 77,486,750 | $ | 79,744,238 | 15.5 | % | (6) | 5/8/2024 | P/I | |||||||||||||||
Public Co. A | NV | C | 2,970,654 | 2,994,612 | 2,994,612 | 14.0 | % | (7) | 1/26/2023 | I/O | ||||||||||||||||||
Private Co. B | MI | C | 12,789,805 | 12,327,465 | 12,879,965 | 17.0 | % | (8) | 9/1/2023 | P/I | ||||||||||||||||||
Total loans held at fair value | $ | 95,072,832 | $ | 92,808,827 | $ | 95,618,815 |
As of September 30, 2022 | |||||||||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years) (2) | ||||||||||||||||||||
Senior term loans | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 | 2.7 | ||||||||||||||||
Total loans held at carrying value | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 | 2.7 |
As of December 31, 2021 | |||||||||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years) (2) | ||||||||||||||||||||
Senior term loans | $ | 270,841,715 | $ | (13,678,219) | $ | 257,163,496 | 3.4 | ||||||||||||||||
Total loans held at carrying value | $ | 270,841,715 | $ | (13,678,219) | $ | 257,163,496 | 3.4 |
As of March 31, 2022 | ||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years) (2) | |||||||||||||
Senior term loans | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 | 2.9 | ||||||||
Total loans held at carrying value | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 | 2.9 |
As of December 31, 2021 | ||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years) (2) | |||||||||||||
Senior term loans | $ | 270,841,715 | $ | (13,678,219 | ) | $ | 257,163,496 | 3.4 | ||||||||
Total loans held at carrying value | $ | 270,841,715 | $ | (13,678,219 | ) | $ | 257,163,496 | 3.4 |
Principal | Original Issue Discount | Carrying Value | ||||||||||
Total loans held at carrying value at December 31, 2021 | $ | 270,841,715 | $ | (13,678,219 | ) | $ | 257,163,496 | |||||
New fundings | 34,245,888 | (638,400 | ) | 33,607,488 | ||||||||
Accretion of original issue discount | - | 3,628,695 | 3,628,695 | |||||||||
Loan repayments | (20,010,726 | ) | - | (20,010,726 | ) | |||||||
Sale of loans | (10,000,000 | ) | - | (10,000,000 | ) | |||||||
PIK interest | 915,688 | - | 915,688 | |||||||||
Loan amortization payments | (153,159 | ) | - | (153,159 | ) | |||||||
Total loans held at carrying value at March 31, 2022 | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 |
Principal | Original Issue Discount | Carrying Value | |||||||||||||||
Total loans held at carrying value at December 31, 2021 | $ | 270,841,715 | $ | (13,678,219) | $ | 257,163,496 | |||||||||||
New fundings | 139,571,920 | (5,128,400) | 134,443,520 | ||||||||||||||
Accretion of original issue discount | — | 8,633,259 | 8,633,259 | ||||||||||||||
Loan repayments | (52,014,211) | — | (52,014,211) | ||||||||||||||
Sale of loans | (10,000,000) | — | (10,000,000) | ||||||||||||||
PIK interest | 2,768,252 | — | 2,768,252 | ||||||||||||||
Loan amortization payments | (1,830,286) | — | (1,830,286) | ||||||||||||||
Total loans held at carrying value at September 30, 2022 | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 |
Collateral Location | Collateral Type (1) | Outstanding Principal (2) | Original Issue Discount | Carrying Value (2) | Interest Rate | Maturity Date (3) | Payment Terms (4) | |||||||||||||||||||||
Private Co. C | PA | C, D | $ | 24,910,301 | $ | (706,591 | ) | $ | 24,203,710 | 17.0 | % | (5) | 12/1/2025 | P/I | ||||||||||||||
Private Co. D | OH, AR | D | 12,138,516 | (772,544 | ) | 11,365,972 | 15.0 | % | (6) | 1/1/2026 | P/I | |||||||||||||||||
Private Co. F | MO | C, D | 12,811,265 | (1,618,606 | ) | 11,192,659 | 17.0 | % | (7) | 5/1/2026 | P/I | |||||||||||||||||
Sub. of Private Co. G | NJ | C, D | 50,398,475 | (2,225,885 | ) | 48,172,590 | 14.3 | % | (8) | 5/1/2026 | P/I | |||||||||||||||||
Public Co. F | IL, FL, NV, OH, MA, MI, MD,AR, NV, AZ | C, D | 86,600,000 | (1,514,933 | ) | 85,085,067 | 8.6 | % | (9) | 5/30/2023 | I/O | |||||||||||||||||
Sub. of Private Co. H | IL | C | 5,781,250 | (86,751 | ) | 5,694,499 | 15.0 | % | (10) | 5/11/2023 | I/O | |||||||||||||||||
Private Co. K | MA | C, D | 7,000,000 | (684,667 | ) | 6,315,333 | 13.0 | % | (11) | 8/3/2026 | P/I | |||||||||||||||||
Private Co. I | MD | C, D | 10,490,498 | (201,481 | ) | 10,289,017 | 15.5 | % | (12) | 8/1/2026 | P/I | |||||||||||||||||
Private Co. J | MO | C | 23,209,101 | (672,384 | ) | 22,536,717 | 15.0 | % | (13) | 9/1/2025 | P/I | |||||||||||||||||
Sub. of Public Co. H | IA, IL, MI, NJ, PA | C, D | 42,500,000 | (2,204,082 | ) | 40,295,918 | 9.8 | % | (14) | 1/1/2026 | I/O | |||||||||||||||||
Total loans held at carrying value | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 |
Collateral Location | Collateral Type (1) | Outstanding Principal (2) | Original Issue Discount | Carrying Value (2) | Interest Rate | Maturity Date (3) | Payment Terms (4) | ||||||||||||||||||||||||||||||||||||||||
Private Co. C | PA | C, D | $ | 24,159,078 | $ | (610,238) | $ | 23,548,840 | 18.5 | % | (5) | 12/01/2025 | P/I | ||||||||||||||||||||||||||||||||||
Sub. of Private Co. G | NJ, PA | C, D | 67,912,444 | (1,953,328) | 65,959,116 | 16.5 | % | (6) | 05/01/2026 | P/I | |||||||||||||||||||||||||||||||||||||
Public Co. F | AR, AZ, IL, FL, NV, OH, MA, MI, MD, NV | C, D | 86,600,000 | (854,133) | 85,745,867 | 8.6 | % | (7) | 05/30/2023 | I/O | |||||||||||||||||||||||||||||||||||||
Sub. of Private Co. H | IL | C | 5,781,250 | (46,712) | 5,734,538 | 15.0 | % | (8) | 05/11/2023 | I/O | |||||||||||||||||||||||||||||||||||||
Private Co. K | MA | C, D | 10,765,379 | (915,708) | 9,849,671 | 15.0 | % | (9) | 05/03/2027 | P/I | |||||||||||||||||||||||||||||||||||||
Private Co. I | MD | C, D | 10,550,781 | (177,777) | 10,373,004 | 17.6 | % | (10) | 08/01/2026 | P/I | |||||||||||||||||||||||||||||||||||||
Private Co. J | MO | C, D | 23,568,458 | (573,986) | 22,994,472 | 19.1 | % | (11) | 09/01/2025 | P/I | |||||||||||||||||||||||||||||||||||||
Sub. of Public Co. H | CT, IA, IL, ME, MI, NJ, PA | C, D | 60,000,000 | (1,910,204) | 58,089,796 | 9.8 | % | (12) | 01/01/2026 | I/O | |||||||||||||||||||||||||||||||||||||
Private Co. L | MO, NJ, OH | C, D | 50,000,000 | (2,303,571) | 47,696,429 | 12.0 | % | (13) | 05/01/2026 | P/I | |||||||||||||||||||||||||||||||||||||
Sub. of Public Co. M | IL, MI, MA, NJ, OH, PA | C, D | 10,000,000 | (827,703) | 9,172,297 | 9.5 | % | (14) | 08/27/2025 | I/O | |||||||||||||||||||||||||||||||||||||
Total loans held at carrying value | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 |
(4)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term. (5)Base interest rate of 9.0% plus Prime (Prime floor of 4.0%) and PIK interest rate of 4.0%. (6)Base interest rate of 10.25% plus Prime (Prime floor of 4.5%). (7)Base weighted average interest rate of 8.6%. (8)Base interest rate of 15.0%. (9)Base interest rate of 12.0% plus SOFR (SOFR floor of 1.0%) (10)Base interest rate of 12.0% plus LIBOR (LIBOR floor of 1.0%) and PIK interest rate of 2.5%. |
5. LOAN RECEIVABLE AT CARRYING VALUE |
Principal | Original Issue Discount | Carrying Value | ||||||||||
Total loans receivable at carrying value at December 31, 2021 | $ | 2,533,266 | $ | (2,678 | ) | $ | 2,530,588 | |||||
Principal repayment of loans | (251,574 | ) | - | (251,574 | ) | |||||||
Accretion of original issue discount | - | 310 | 310 | |||||||||
Total loans receivable at carrying value at March 31, 2022 | $ | 2,281,692 | $ | (2,368 | ) | $ | 2,279,324 |
Principal | Original Issue Discount | Carrying Value | |||||||||||||||
Total loan receivable at carrying value at December 31, 2021 | $ | 2,533,266 | $ | (2,678) | $ | 2,530,588 | |||||||||||
Principal repayment of loans | (337,114) | — | (337,114) | ||||||||||||||
Accretion of original issue discount | — | 805 | 805 | ||||||||||||||
PIK interest | 26,187 | — | 26,187 | ||||||||||||||
Total loan receivable at carrying value at September 30, 2022 | $ | 2,222,339 | $ | (1,873) | $ | 2,220,466 |
Outstanding (1) | Unfunded (2) | Total | |||||||||||||||
Balance at June 30, 2022 | $ | 5,018,072 | $ | 594,840 | $ | 5,612,912 | |||||||||||
Provision for current expected credit losses | 448,122 | 93,836 | 541,958 | ||||||||||||||
Write-offs | — | — | — | ||||||||||||||
Recoveries | — | — | — | ||||||||||||||
Balance at September 30, 2022 | $ | 5,466,194 | $ | 688,676 | $ | 6,154,870 |
Outstanding (1) | Unfunded (2) | Total | Outstanding (1) | Unfunded (2) | Total | ||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 2,431,558 | $ | 683,177 | $ | 3,114,735 | Balance at December 31, 2021 | $ | 2,431,558 | $ | 683,177 | $ | 3,114,735 | ||||||||||||||||
Provision for current expected credit losses | 959,118 | (53,989 | ) | 905,129 | Provision for current expected credit losses | 3,034,636 | 5,499 | 3,040,135 | |||||||||||||||||||||
Write-offs | 0 | 0 | 0 | Write-offs | — | — | — | ||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | Recoveries | — | — | — | ||||||||||||||||||||||
Balance at March 31, 2022 | $ | 3,390,676 | $ | 629,188 | $ | 4,019,864 | |||||||||||||||||||||||
Balance at September 30, 2022 | Balance at September 30, 2022 | $ | 5,466,194 | $ | 688,676 | $ | 6,154,870 |
(2)As of September 30, 2022 and December 31, 2021, the CECL Reserve related to unfunded commitments on loans held at carrying value is recorded within current expected credit loss reserve as a liability in the Company’s consolidated balance sheets. |
Rating | Definition | ||||||
1 | Very Low Risk — Materially exceeds performance metrics included in original or current credit underwriting and business plan | ||||||
2 | Low Risk — Collateral and business performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan | ||||||
3 | Medium Risk — Collateral and business performance meets, or is on track to meet underwriting expectations; business plan is met or can reasonably be achieved | ||||||
4 | High Risk/ Potential for Loss — Collateral performance falls short of underwriting, material differences from business plans, defaults may exist, or may soon exist absent material improvement. Risk of recovery of interest exists | ||||||
5 | Impaired/Loss Likely — Performance is significantly worse than underwriting with major variances from business plan observed. Loan covenants or financial milestones have been breached; exit from loan or refinancing is uncertain. Full recovery of principal is unlikely |
Risk Rating: | 2022 | 2021 | 2020 | Total | |||||||||||||||||||
1 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
2 | 26,209,866 | 59,536,000 | — | 85,745,866 | |||||||||||||||||||
3 | 66,718,397 | 129,783,451 | 25,769,306 | 222,271,154 | |||||||||||||||||||
4 | — | 33,367,476 | — | 33,367,476 | |||||||||||||||||||
5 | — | — | — | — | |||||||||||||||||||
Total | $ | 92,928,263 | $ | 222,686,927 | $ | 25,769,306 | $ | 341,384,496 |
Risk Rating: | 2022 | 2021 | 2020 | Total | ||||||||
1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||
2 | 25,997,066 | 59,088,000 | 0 | 85,085,066 | ||||||||
3 | 0 | 134,207,717 | 37,849,005 | 172,056,722 | ||||||||
4 | 0 | 10,289,018 | 0 | 10,289,018 | ||||||||
5 | 0 | 0 | 0 | 0 | ||||||||
Total | $ | 25,997,066 | $ | 203,584,735 | $ | 37,849,005 | $ | 267,430,806 |
7. INTEREST RECEIVABLE |
As of March 31, 2022 | As of December 31, 2021 | |||||||
Interest receivable | $ | 3,128,116 | $ | 3,562,566 | ||||
PIK receivable | 541,834 | 554,357 | ||||||
Unused fees receivable | 565,315 | 296,015 | ||||||
Total interest receivable | $ | 4,235,265 | $ | 4,412,938 |
As of September 30, 2022 | As of December 31, 2021 | ||||||||||
Interest receivable | $ | 3,811,696 | $ | 3,562,566 | |||||||
PIK receivable | 490,284 | 554,357 | |||||||||
Unused fees receivable | 140,700 | 296,015 | |||||||||
Total interest receivable | $ | 4,442,680 | $ | 4,412,938 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Beginning reserves | $ | 5,186,615 | $ | 5,547,863 | $ | 4,782,271 | $ | 1,325,750 | |||||||||||||||
New reserves | 3,970,958 | 4,525,468 | 9,970,958 | 9,450,468 | |||||||||||||||||||
Reserves disbursed | (3,031,143) | (1,819,036) | (8,626,799) | (2,521,923) | |||||||||||||||||||
Ending reserves | $ | 6,126,430 | $ | 8,254,295 | $ | 6,126,430 | $ | 8,254,295 |
Three months ended March 31, 2022 | ||||
Beginning reserves | $ | 4,782,271 | ||
New reserves | 0 | |||
Reserves disbursed | (4,175,108 | ) | ||
Ending reserves | $ | 607,163 |
9. DEBT |
2027 Senior Notes | |||||
Year | |||||
2022 (remaining) | $ | — | |||
2023 | — | ||||
2024 | — | ||||
2025 | — | ||||
2026 | — | ||||
Thereafter | 100,000,000 | ||||
Total principal | $ | 100,000,000 |
Senior Unsecured Notes | ||||
Year | ||||
2022 (remaining) | $ | 0 | ||
2023 | 0 | |||
2024 | 0 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 100,000,000 | |||
Total principal | $ | 100,000,000 |
Three months ended September 30, 2022 | |||||||||||||||||||||||
2027 Senior Notes | Revolving Credit Facility | AFCF Revolving Credit Facility | Total Borrowings | ||||||||||||||||||||
Interest expense | $ | 1,437,500 | $ | — | $ | — | $ | 1,437,500 | |||||||||||||||
Unused fee expense | — | — | — | — | |||||||||||||||||||
Amortization of deferred financing costs | 166,458 | 40,130 | — | 206,588 | |||||||||||||||||||
Total interest expense | $ | 1,603,958 | $ | 40,130 | $ | — | $ | 1,644,088 |
Nine months ended September 30, 2022 | |||||||||||||||||||||||
2027 Senior Notes | Revolving Credit Facility | AFCF Revolving Credit Facility | Total Borrowings | ||||||||||||||||||||
Interest expense | $ | 4,296,527 | $ | — | $ | 19,792 | $ | 4,316,319 | |||||||||||||||
Unused fee expense | — | — | 60,417 | 60,417 | |||||||||||||||||||
Amortization of deferred financing costs | 492,216 | 67,610 | 154,645 | 714,471 | |||||||||||||||||||
Total interest expense | $ | 4,788,743 | $ | 67,610 | $ | 234,854 | $ | 5,091,207 |
Three months ended March 31, 2022 | ||||||||||||
Senior Unsecured Notes | Line of Credit | Total Borrowings | ||||||||||
Interest expense | $ | 1,421,529 | $ | 19,792 | $ | 1,441,321 | ||||||
Unused fee expense | 0 | 45,833 | 45,833 | |||||||||
Amortization of deferred financing costs | 161,979 | 50,982 | 212,961 | |||||||||
Total interest expense | $ | 1,583,508 | $ | 116,607 | $ | 1,700,115 |
10. COMMITMENTS AND CONTINGENCIES |
As of September 30, 2022 | As of December 31, 2021 | |||||||||||||
Total original loan commitments | $ | 502,184,382 | $ | 419,198,125 | ||||||||||
Less: drawn commitments | (446,023,223) | (363,659,505) | ||||||||||||
Total undrawn commitments | $ | 56,161,159 | $ | 55,538,620 |
As of March 31, 2022 | As of December 31, 2021 | |||||||
Total original loan commitments | $ | 420,083,125 | $ | 419,198,125 | ||||
Less: drawn commitments | | (370,645,105 | ) | (363,659,505 | ) | |||
Total undrawn commitments | $ | 49,438,020 | $ | 55,538,620 |
As of March 31, 2022 | As of December 31, 2021 | As of September 30, 2022 | As of December 31, 2021 | ||||||||||||||||
Non-vested | 320,114 | 183,114 | Non-vested | 300,652 | 183,114 | ||||||||||||||
Vested | 2,049,518 | 1,449,518 | Vested | 2,068,469 | 1,449,518 | ||||||||||||||
Forfeited | (53,526 | ) | (28,396 | ) | Forfeited | (82,549) | (28,396) | ||||||||||||
Balance | 2,316,106 | 1,604,236 | Balance | 2,286,572 | 1,604,236 |
Assumptions | Range | |||||||
Expected volatility | 40% - | |||||||
Expected dividend yield | 10% - | |||||||
Risk-free interest rate | 0.5% - | |||||||
Expected forfeiture rate |
Three months ended March 31, 2022 | Weighted-Average Grant Date Fair Value Per Option | ||||||||||||||||||
Balance as of December 31, 2021 | 1,604,236 | $ | 1.08 | ||||||||||||||||
Three months ended September 30, 2022 | Weighted-average grant date fair value per option | ||||||||||||||||||
Balance as of June 30, 2022 | Balance as of June 30, 2022 | 2,316,106 | $ | 1.21 | |||||||||||||||
Granted | 737,000 | 1.46 | Granted | — | — | ||||||||||||||
Exercised | 0 | 0 | Exercised | (5,511) | 0.90 | ||||||||||||||
Forfeited | (25,130 | ) | 0.98 | Forfeited | (24,023) | 1.20 | |||||||||||||
Balance as of March 31, 2022 | 2,316,106 | $ | 1.09 | ||||||||||||||||
Balance as of September 30, 2022 | Balance as of September 30, 2022 | 2,286,572 | $ | 1.21 |
Three months ended March 31, 2021 | Weighted-Average Grant Date Fair Value Per Option | |||||||
Balance as of December 31, 2020 | 926,898 | $ | 0.91 | |||||
Granted | 689,200 | 1.31 | ||||||
Exercised | 0 | 0 | ||||||
Forfeited | 0 | 0 | ||||||
Balance as of March 31, 2021 | 1,616,098 | $ | 1.08 |
Three months ended September 30, 2021 | Weighted-average grant date fair value per option | ||||||||||
Balance as of June 30, 2021 | 1,613,098 | $ | 1.08 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Forfeited | (8,862) | 0.90 | |||||||||
Balance as of September 30, 2021 | 1,604,236 | $ | 1.08 |
Nine months ended September 30, 2022 | Weighted-average grant date fair value per option | ||||||||||
Balance as of December 31, 2021 | 1,604,236 | $ | 1.08 | ||||||||
Granted | 742,000 | 1.46 | |||||||||
Exercised | (5,511) | 0.90 | |||||||||
Forfeited | (54,153) | 1.12 | |||||||||
Balance as of September 30, 2022 | 2,286,572 | $ | 1.21 |
Nine months ended September 30, 2021 | Weighted-average grant date fair value per option | ||||||||||
Balance as of December 31, 2020 | 926,898 | $ | 0.91 | ||||||||
Granted | 689,200 | 1.31 | |||||||||
Exercised | — | — | |||||||||
Forfeited | (11,862) | 1.01 | |||||||||
Balance as of September 30, 2021 | 1,604,236 | $ | 1.08 |
As of March 31, 2022 | As of December 31, 2021 | |||||||
Non-vested | 64,581 | 56,285 | ||||||
Vested | 0 | 0 | ||||||
Forfeited | 0 | 0 | ||||||
Balance | 64,581 | 56,285 |
As of September 30, 2022 | As of December 31, 2021 | ||||||||||
Non-vested | 64,581 | 56,285 | |||||||||
Vested | — | — | |||||||||
Forfeited | (1,238) | — | |||||||||
Balance | 63,343 | 56,285 |
Three months ended September 30, 2022 | |||||
Balance as of June 30, 2022 | 64,581 | ||||
Granted | — | ||||
Exercised | — | ||||
Forfeited | (1,238) | ||||
Balance as of September 30, 2022 | 63,343 |
Three months ended September 30, 2021 | |||||
Balance as of June 30, 2021 | — | ||||
Granted | 56,285 | ||||
Exercised | — | ||||
Forfeited | — | ||||
Balance as of September 30, 2021 | 56,285 |
Nine months ended September 30, 2022 | |||||
Balance as of December 31, 2021 | 56,285 | ||||
Granted | 8,296 | ||||
Exercised | |||||
Forfeited | |||||
Balance as of |
Nine months ended September 30, 2021 | |||||
Balance as of December 31, 2020 | |||||
Granted | |||||
Exercised | |||||
Forfeited | |||||
Balance as of |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Net income (loss) attributable to common stockholders | $ | 10,162,120 | $ | 1,400,755 | ||||
Divided by: | ||||||||
Basic weighted average shares of common stock outstanding | 19,319,993 | 7,144,670 | ||||||
Diluted weighted average shares of common stock outstanding | 19,591,472 | 7,485,048 | ||||||
Basic weighted average earnings per common share | $ | 0.53 | $ | 0.20 | ||||
Diluted weighted average earnings per common share | $ | 0.52 | $ | 0.19 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 11,480,519 | $ | 7,930,680 | $ | 32,994,312 | $ | 13,959,222 | |||||||||||||||
Divided by: | |||||||||||||||||||||||
Basic weighted average shares of common stock outstanding | 20,019,760 | 16,402,984 | 19,687,730 | 12,368,977 | |||||||||||||||||||
Diluted weighted average shares of common stock outstanding | 20,112,033 | 16,776,648 | 19,780,003 | 12,742,641 | |||||||||||||||||||
Basic weighted average earnings per common share | $ | 0.57 | $ | 0.48 | $ | 1.68 | $ | 1.13 | |||||||||||||||
Diluted weighted average earnings per common share | $ | 0.57 | $ | 0.47 | $ | 1.67 | $ | 1.10 |
Fair Value Measurement as of March 31, 2022 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Loans held at fair value | $ | 95,072,832 | $ | 0 | $ | 0 | $ | 95,072,832 | ||||||||
Total | $ | 95,072,832 | $ | 0 | $ | 0 | $ | 95,072,832 |
Fair Value Measurement as of December 31, 2021 | Fair Value Measurement as of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Loans held at fair value | $ | 77,096,319 | $ | 0 | $ | 0 | $ | 77,096,319 | Loans held at fair value | $ | 94,076,146 | $ | — | $ | — | $ | 94,076,146 | ||||||||||||||||||||||
Total | $ | 77,096,319 | $ | 0 | $ | 0 | $ | 77,096,319 | Total | $ | 94,076,146 | $ | — | $ | — | $ | 94,076,146 |
Fair Value Measurement as of December 31, 2021 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Loans held at fair value | $ | 77,096,319 | $ | — | $ | — | $ | 77,096,319 | |||||||||||||||
Total | $ | 77,096,319 | $ | — | $ | — | $ | 77,096,319 |
Nine months ended September 30, 2022 | |||||
Total loans using Level 3 inputs at December 31, 2021 | $ | 77,096,319 | |||
Change in unrealized (losses) gains on loans at fair value, net | (1,561,890) | ||||
Additional fundings | 18,737,988 | ||||
Original issue discount and other discounts, net of costs | (479,276) | ||||
Loan repayments | (1,960,000) | ||||
Loan amortization payments | (1,089,776) | ||||
Accretion of original issue discount | 1,076,212 | ||||
PIK interest | 2,256,569 | ||||
Total loans using Level 3 inputs at September 30, 2022 | $ | 94,076,146 |
Three months ended March 31, 2022 | ||||
Total loans using Level 3 inputs at December 31, 2021 | $ | 77,096,319 | ||
Change in unrealized gains (losses) on loans at fair value, net | 80,843 | |||
Additional fundings | 17,285,000 | |||
Original issue discount and other discounts, net of costs | (429,275 | ) | ||
Accretion of original issue discount | 336,872 | |||
PIK interest | 703,073 | |||
Total loans using Level 3 inputs at March 31, 2022 | $ | 95,072,832 |
As of September 30, 2022 | |||||||||||||||||||||||||||||
Unobservable Input | |||||||||||||||||||||||||||||
Fair Value | Primary Valuation Techniques | Input | Estimated Range | Weighted Average | |||||||||||||||||||||||||
Senior term loans | $ | 94,076,146 | Yield analysis | Market yield | 17.92% - 26.48% | 19.25 | % | ||||||||||||||||||||||
Total Investments | $ | 94,076,146 |
As of March 31, 2022 | |||||||||||||||
Unobservable Input | |||||||||||||||
Fair Value | Primary Valuation Techniques | Input | Estimated Range | Weighted Average | |||||||||||
Senior Term Loans | $ | 95,072,832 | Yield analysis | Market Yield | 16.26% - 21.73 | % | 17.41 | % | |||||||
Total Investments | $ | 95,072,832 |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Fair Value | Primary Valuation Techniques | Input | Estimated Range | Weighted Average | Unobservable Input | |||||||||||||||||||||||||||||||||||||||
Senior Term Loans | $ | 77,096,319 | Yield analysis | Market Yield | 17.71% - 20.96 | % | 18.22 | % | ||||||||||||||||||||||||||||||||||||
Fair Value | Primary Valuation Techniques | Input | Estimated Range | Weighted Average | ||||||||||||||||||||||||||||||||||||||||
Senior term loans | Senior term loans | $ | 77,096,319 | Yield analysis | Market yield | 17.71% - 20.96% | 18.22 | % | ||||||||||||||||||||||||||||||||||||
Total Investments | $ | 77,096,319 | Total Investments | $ | 77,096,319 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | |||||||||||||
Total debt securities held at fair value at December 31, 2021 | $ | 15,000,000 | $ | 1,050,000 | $ | (168,750 | ) | $ | 15,881,250 | |||||||
Realized gains (losses) on securities at fair value, net | 0 | (150,000 | ) | 0 | (150,000 | ) | ||||||||||
Change in accumulated other comprehensive income | 0 | 0 | 168,750 | 168,750 | ||||||||||||
Sale of securities | (15,000,000 | ) | (900,000 | ) | 0 | (15,900,000 | ) | |||||||||
Total debt securities held at fair value at March 31, 2022 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | ||||||||||||||||||||
Total debt securities held at fair value at December 31, 2021 | $ | 15,000,000 | $ | 1,050,000 | $ | (168,750) | $ | 15,881,250 | |||||||||||||||
Realized (losses) gains on securities at fair value, net | — | (150,000) | — | (150,000) | |||||||||||||||||||
Change in accumulated other comprehensive income | — | — | 168,750 | 168,750 | |||||||||||||||||||
Sale of securities | (15,000,000) | (900,000) | — | (15,900,000) | |||||||||||||||||||
Total debt securities held at fair value at September 30, 2022 | $ | — | $ | — | $ | — | $ | — |
Fair Value Measurement as of March 31, 2022 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Debt securities held at fair value | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Total | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Fair Value Measurement as of December 31, 2021 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Debt securities held at fair value | $ | 15,881,250 | $ | 0 | $ | 15,881,250 | $ | 0 | ||||||||
Total | $ | 15,881,250 | $ | 0 | $ | 15,881,250 | $ | 0 |
Fair Value Measurement as of September 30, 2022 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Debt securities held at fair value | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — |
Fair Value Measurement as of December 31, 2021 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Debt securities held at fair value | $ | 15,881,250 | $ | — | $ | 15,881,250 | $ | — | |||||||||||||||
Total | $ | 15,881,250 | $ | — | $ | 15,881,250 | $ | — |
As of March 31, 2022 | ||||||||
Carrying Value | Fair Value | |||||||
Financial assets | ||||||||
Cash and cash equivalents | $ | 63,615,179 | $ | 63,615,179 | ||||
Loans held for investment at carrying value | $ | 265,151,482 | $ | 265,006,706 | ||||
Loan receivable at carrying value | $ | 2,279,324 | $ | 2,229,213 |
As of September 30, 2022 | |||||||||||
Carrying Value | Fair Value | ||||||||||
Financial assets: | |||||||||||
Cash and cash equivalents | $ | 36,319,623 | $ | 36,319,623 | |||||||
Loans held for investment at carrying value | $ | 339,164,030 | $ | 334,334,871 | |||||||
Loan receivable at carrying value | $ | 2,220,466 | $ | 2,147,890 | |||||||
Financial liabilities: | |||||||||||
Senior unsecured notes, net | $ | 96,964,872 | $ | 85,034,060 |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Affiliate Costs | ||||||||
Management fees | $ | 1,255,867 | $ | 451,675 | ||||
Less outside fees earned | (387,493 | ) | (237,743 | ) | ||||
Base management fees | 868,374 | 213,932 | ||||||
Incentive fees earned | 2,978,839 | 662,730 | ||||||
General and administrative expenses reimbursable to Manager | 906,717 | 365,567 | ||||||
Total | $ | 4,753,930 | $ | 1,242,229 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Affiliate Costs | |||||||||||||||||||||||
Management fees | $ | 1,318,563 | $ | 1,030,718 | $ | 3,869,023 | $ | 2,301,924 | |||||||||||||||
Less: outside fees earned | (432,426) | (256,989) | (1,307,969) | (677,439) | |||||||||||||||||||
Base management fees | 886,137 | 773,729 | 2,561,054 | 1,624,485 | |||||||||||||||||||
Incentive fees earned | 2,938,598 | 1,769,207 | 9,312,462 | 3,873,984 | |||||||||||||||||||
General and administrative expenses reimbursable to Manager | 910,243 | 625,711 | 2,790,846 | 1,415,217 | |||||||||||||||||||
Total | $ | 4,734,978 | $ | 3,168,647 | $ | 14,664,362 | $ | 6,913,686 |
Record Date | Payment Date | Common Share Distribution Amount | Taxable Ordinary Income | Return of Capital | Section 199A Dividends | ||||||||||||||
Regular cash dividend | 3/15/2021 | 3/31/2021 | $ | 0.36 | $ | 0.36 | $ | 0 | $ | 0.36 | |||||||||
Regular cash dividend | 3/31/2022 | 4/15/2022 | $ | 0.55 | $ | 0.55 | $ | 0 | $ | 0.55 |
Record Date | Payment Date | Common Share Distribution Amount | Taxable Ordinary Income | Return of Capital | Section 199A Dividends | ||||||||||||||||||||||||||||||
Regular cash dividend | 3/15/2021 | 3/31/2021 | $ | 0.36 | $ | 0.36 | $ | — | $ | 0.36 | |||||||||||||||||||||||||
Regular cash dividend | 6/15/2021 | 6/30/2021 | $ | 0.38 | $ | 0.38 | $ | — | $ | 0.38 | |||||||||||||||||||||||||
Regular cash dividend | 9/30/2021 | 10/15/2021 | $ | 0.43 | $ | 0.43 | $ | — | $ | 0.43 | |||||||||||||||||||||||||
2021 Period Subtotal | $ | 1.17 | $ | 1.17 | $ | — | $ | 1.17 | |||||||||||||||||||||||||||
Regular cash dividend | 3/31/2022 | 4/15/2022 | $ | 0.55 | $ | 0.55 | $ | — | $ | 0.55 | |||||||||||||||||||||||||
Regular cash dividend | 6/30/2022 | 7/15/2022 | $ | 0.56 | $ | 0.56 | $ | — | $ | 0.56 | |||||||||||||||||||||||||
Regular cash dividend | 9/30/2022 | 10/14/2022 | $ | 0.56 | $ | 0.56 | $ | — | $ | 0.56 | |||||||||||||||||||||||||
2022 Period Subtotal | $ | 1.67 | $ | 1.67 | $ | — | $ | 1.67 |
17. SUBSEQUENT EVENTS |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Date Declared | Payable to Shareholders of Record at the Close of Business on | Date Paid | Amount per Share | Aggregate Amount Paid | ||||||||||||||||||||||
March 12, 2021 | March 15, 2021 | March 31, 2021 | $0.36 | $2.2 million | ||||||||||||||||||||||
May 7, 2021 | June 15, 2021 | June 30, 2021 | 0.38 | 5.1 million | ||||||||||||||||||||||
September 15, 2021 | September 30, 2021 | October 15, 2021 | 0.43 | 7.1 million | ||||||||||||||||||||||
2021 Period Subtotal | $1.17 | $14.4 million | ||||||||||||||||||||||||
March 10, 2022 | March 31, 2022 | April 15, 2022 | $0.55 | $10.9 million | ||||||||||||||||||||||
June 15, 2022 | June 30, 2022 | July 15, 2022 | 0.56 | 11.1 million | ||||||||||||||||||||||
September 15, 2022 | September 30, 2022 | October 14, 2022 | 0.56 | 11.4 million | ||||||||||||||||||||||
2022 Period Subtotal | $1.67 | $33.4 million |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Net Income | $ | 10,162,120 | $ | 1,400,755 | ||||
Adjustments to net income | ||||||||
Stock-based compensation expense | 990,023 | 1,599,115 | ||||||
Depreciation and amortization | - | - | ||||||
Unrealized (gain), losses or other non-cash items | (80,843 | ) | 144,402 | |||||
Provision for current expected credit losses | 905,129 | 66,100 | ||||||
TRS (income) loss | (61,071 | ) | - | |||||
One-time events pursuant to changes in GAAP and certain non-cash charges | - | - | ||||||
Distributable Earnings | $ | 11,915,358 | $ | 3,210,372 | ||||
Basic weighted average shares of common stock outstanding (in shares) | 19,319,993 | 7,144,670 | ||||||
Distributable Earnings per Basic Weighted Average Share | $ | 0.62 | $ | 0.45 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 11,480,519 | $ | 7,930,680 | $ | 32,994,312 | $ | 13,959,222 | |||||||||||||||
Adjustments to net income: | |||||||||||||||||||||||
Stock-based compensation expense | 114,062 | 51,429 | 1,221,482 | 1,662,001 | |||||||||||||||||||
Depreciation and amortization | — | — | — | — | |||||||||||||||||||
Unrealized losses, (gains) or other non-cash items | 637,279 | (1,423,929) | 1,561,890 | (796,368) | |||||||||||||||||||
Provision for current expected credit losses | 541,958 | 660,612 | 3,040,135 | 1,372,498 | |||||||||||||||||||
TRS (income) loss | (1,019,424) | (62,320) | (1,567,970) | (62,320) | |||||||||||||||||||
One-time events pursuant to changes in GAAP and certain non-cash charges | — | — | — | — | |||||||||||||||||||
Distributable earnings | $ | 11,754,394 | $ | 7,156,472 | $ | 37,249,849 | $ | 16,135,033 | |||||||||||||||
Basic weighted average shares of common stock outstanding (in shares) | 20,019,760 | 16,402,984 | 19,687,730 | 12,368,977 | |||||||||||||||||||
Distributable earnings per basic weighted average share | $ | 0.59 | $ | 0.44 | $ | 1.89 | $ | 1.30 |
As of September 30, 2022 | |||||||||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years) (3) | ||||||||||||||||||||
Senior term loans | $ | 94,076,146 | $ | 93,454,875 | $ | 95,575,523 | 1.5 | ||||||||||||||||
Total loans held at fair value | $ | 94,076,146 | $ | 93,454,875 | $ | 95,575,523 | 1.5 |
As of March 31, 2022 | ||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years)(3) | |||||||||||||
Senior term loans | $ | 95,072,832 | $ | 92,808,827 | $ | 95,618,815 | 2.0 | |||||||||
Total loans held at fair value | $ | 95,072,832 | $ | 92,808,827 | $ | 95,618,815 | 2.0 |
As of December 31, 2021 | |||||||||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years) (3) | ||||||||||||||||||||
Senior term loans | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 | ||||||||||||||||
Total loans held at fair value | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 |
As of December 31, 2021 | ||||||||||||||||
Fair Value (1) | Carrying Value (2) | Outstanding Principal (2) | Weighted Average Remaining Life (Years)(3) | |||||||||||||
Senior term loans | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 | |||||||||
Total loans held at fair value | $ | 77,096,319 | $ | 74,913,157 | $ | 77,630,742 | 2.2 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | |||||||||||||
Total loans held at fair value at December 31, 2021 | $ | 77,630,742 | $ | (2,717,584 | ) | $ | 2,183,161 | $ | 77,096,319 | |||||||
Change in unrealized gains (losses) on loans at fair value, net | - | - | 80,843 | 80,843 | ||||||||||||
New fundings | 17,285,000 | (429,275 | ) | - | 16,855,725 | |||||||||||
Accretion of original issue discount | - | 336,872 | - | 336,872 | ||||||||||||
PIK interest | 703,073 | - | - | 703,073 | ||||||||||||
Total loans held at fair value at March 31, 2022 | $ | 95,618,815 | $ | (2,809,987 | ) | $ | 2,264,004 | $ | 95,072,832 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | ||||||||||||||||||||
Total loans held at fair value at December 31, 2021 | $ | 77,630,742 | $ | (2,717,584) | $ | 2,183,161 | $ | 77,096,319 | |||||||||||||||
Change in unrealized (losses) gains on loans at fair value, net | — | — | (1,561,890) | (1,561,890) | |||||||||||||||||||
New fundings | 18,737,988 | (479,276) | — | 18,258,712 | |||||||||||||||||||
Loan repayments | (1,960,000) | — | — | (1,960,000) | |||||||||||||||||||
Loan amortization payments | (1,089,776) | — | — | (1,089,776) | |||||||||||||||||||
Accretion of original issue discount | — | 1,076,212 | — | 1,076,212 | |||||||||||||||||||
PIK interest | 2,256,569 | — | — | 2,256,569 | |||||||||||||||||||
Total loans held at fair value at September 30, 2022 | $ | 95,575,523 | $ | (2,120,648) | $ | 621,271 | $ | 94,076,146 |
As of December 31, 2021 | ||||||||||||||||
Fair Value | Carrying Value (1) | Outstanding Principal (1) | Weighted Average Remaining Life (Years) (2) | |||||||||||||
Debt securities | $ | 15,881,250 | $ | 16,050,000 | $ | 15,000,000 | 2.9 | |||||||||
Total debt securities held at fair value | $ | 15,881,250 | $ | 16,050,000 | $ | 15,000,000 | 2.9 |
As of December 31, 2021 | |||||||||||||||||||||||
Fair Value | Carrying Value (1) | Outstanding Principal (1) | Weighted Average Remaining Life (Years) (2) | ||||||||||||||||||||
Debt securities | $ | 15,881,250 | $ | 16,050,000 | $ | 15,000,000 | 2.9 | ||||||||||||||||
Total debt securities held at fair value | $ | 15,881,250 | $ | 16,050,000 | $ | 15,000,000 | 2.9 |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | |||||||||||||
Total debt securities held at fair value at December 31, 2021 | $ | 15,000,000 | $ | 1,050,000 | $ | (168,750 | ) | $ | 15,881,250 | |||||||
Realized gains (losses) on securities at fair value, net | - | (150,000 | ) | - | (150,000 | ) | ||||||||||
Change in unrealized gains (losses) on securities at fair value, net | - | - | 168,750 | 168,750 | ||||||||||||
Sale of loans | (15,000,000 | ) | (900,000 | ) | - | (15,900,000 | ) | |||||||||
Total debt securities held at fair value at March 31, 2022 | $ | - | $ | - | $ | - | $ | - |
Principal | Original Issue Discount | Unrealized Gains (Losses) | Fair Value | ||||||||||||||||||||
Total debt securities held at fair value at December 31, 2021 | $ | 15,000,000 | $ | 1,050,000 | $ | (168,750) | $ | 15,881,250 | |||||||||||||||
Realized (losses) gains on securities at fair value, net | — | (150,000) | — | (150,000) | |||||||||||||||||||
Change in accumulated other comprehensive income | — | — | 168,750 | 168,750 | |||||||||||||||||||
Sale of securities | (15,000,000) | (900,000) | — | (15,900,000) | |||||||||||||||||||
Total debt securities held at fair value at September 30, 2022 | $ | — | $ | — | $ | — | $ | — |
As of March 31, 2022 | ||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years)(2) | |||||||||||||
Senior term loans | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 | 2.9 | ||||||||
Total loans held at carrying value | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 | 2.9 |
As of December 31, 2021 | ||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years)(2) | |||||||||||||
Senior term loans | $ | 270,841,715 | $ | (13,678,219 | ) | $ | 257,163,496 | 3.4 | ||||||||
Total loans held at carrying value | $ | 270,841,715 | $ | (13,678,219 | ) | $ | 257,163,496 | 3.4 |
As of September 30, 2022 | |||||||||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years) (2) | ||||||||||||||||||||
Senior term loans | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 | 2.7 | ||||||||||||||||
Total loans held at carrying value | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 | 2.7 |
As of December 31, 2021 | |||||||||||||||||||||||
Outstanding Principal (1) | Original Issue Discount | Carrying Value (1) | Weighted Average Remaining Life (Years) (2) | ||||||||||||||||||||
Senior term loans | $ | 270,841,715 | $ | (13,678,219) | $ | 257,163,496 | 3.4 | ||||||||||||||||
Total loans held at carrying value | $ | 270,841,715 | $ | (13,678,219) | $ | 257,163,496 | 3.4 |
Principal | Original Issue Discount | Carrying Value | ||||||||||
Total loans held at carrying value at December 31, 2021 | $ | 270,841,715 | $ | (13,678,219 | ) | $ | 257,163,496 | |||||
New fundings | 34,245,888 | (638,400 | ) | 33,607,488 | ||||||||
Accretion of original issue discount | - | 3,628,695 | 3,628,695 | |||||||||
Loan repayments | (20,010,726 | ) | - | (20,010,726 | ) | |||||||
Sale of loans | (10,000,000 | ) | - | (10,000,000 | ) | |||||||
PIK interest | 915,688 | - | 915,688 | |||||||||
Loan amortization payments | (153,159 | ) | - | (153,159 | ) | |||||||
Total loans held at carrying value at March 31, 2022 | $ | 275,839,406 | $ | (10,687,924 | ) | $ | 265,151,482 |
Principal | Original Issue Discount | Carrying Value | |||||||||||||||
Total loans held at carrying value at December 31, 2021 | $ | 270,841,715 | $ | (13,678,219) | $ | 257,163,496 | |||||||||||
New fundings | 139,571,920 | (5,128,400) | 134,443,520 | ||||||||||||||
Accretion of original issue discount | — | 8,633,259 | 8,633,259 | ||||||||||||||
Loan repayments | (52,014,211) | — | (52,014,211) | ||||||||||||||
Sale of loans | (10,000,000) | — | (10,000,000) | ||||||||||||||
PIK interest | 2,768,252 | — | 2,768,252 | ||||||||||||||
Loan amortization payments | (1,830,286) | — | (1,830,286) | ||||||||||||||
Total loans held at carrying value at September 30, 2022 | $ | 349,337,390 | $ | (10,173,360) | $ | 339,164,030 |
Principal | Original Issue Discount | Carrying Value | |||||||||||||||
Total loan receivable at carrying value at December 31, 2021 | $ | 2,533,266 | $ | (2,678) | $ | 2,530,588 | |||||||||||
Principal repayment of loans | (337,114) | — | (337,114) | ||||||||||||||
Accretion of original issue discount | — | 805 | 805 | ||||||||||||||
PIK interest | 26,187 | — | 26,187 | ||||||||||||||
Total loan receivable at carrying value at September 30, 2022 | $ | 2,222,339 | $ | (1,873) | $ | 2,220,466 |
Principal | Original Issue Discount | Carrying Value | ||||||||||
Total loans receivable at carrying value at December 31, 2021 | $ | 2,533,266 | $ | (2,678 | ) | $ | 2,530,588 | |||||
Principal repayment of loans | (251,574 | ) | - | (251,574 | ) | |||||||
Accretion of original issue discount | - | 310 | 310 | |||||||||
Total loans receivable at carrying value at March 31, 2022 | $ | 2,281,692 | $ | (2,368 | ) | $ | 2,279,324 |
Loan Names | Status | Original Funding Date(1) | Loan Maturity | AFCG Loan, net of Syndication | % of Total AFCG | Principal Balance as of 3/31/2022 | Cash Interest Rate | PIK | Fixed/ Floating | Amortization During Term | YTM (2)(3) | ||||||||||||||||||||
Public Co. A - Real Estate Loan | Funded | 7/3/2019 | 1/26/2023 | $ | 2,940,000 | 0.7 | % | $ | 2,994,612 | 10.0 | % | 4.0 | % | Fixed | No | 19 | % | ||||||||||||||
Public Co. A - Equipment Loans | Funded | 8/5/2019 | 3/5/2024 | 4,000,000 | 0.9 | % | 2,281,692 | 12.0 | % | N/A | Fixed | Yes | 19 | % | |||||||||||||||||
Private Co. A(4) | Funded | 5/8/2020 | 5/8/2024 | 77,785,000 | 18.5 | % | 79,744,238 | 12.8 | % | 2.7 | % | Fixed | Yes | 22 | % | ||||||||||||||||
Private Co. B | Funded | 9/10/2020 | 9/1/2023 | 15,500,000 | 3.7 | % | 12,879,965 | 13.0 | % | 4.0 | % | Fixed | Yes | 28 | % | ||||||||||||||||
Private Co. C | Funded | 11/5/2020 | 12/1/2025 | 24,000,000 | 5.7 | % | 24,910,301 | 13.0 | % | 4.0 | % | Floating | Yes | 23 | % | ||||||||||||||||
Private Co. D | Funded | 12/23/2020 | 1/1/2026 | 12,000,000 | 2.9 | % | 12,138,516 | 13.0 | % | 2.0 | % | Fixed | Yes | 21 | % | ||||||||||||||||
Private Co. F | Funded | 4/27/2021 | 5/1/2026 | 13,000,000 | 3.1 | % | 12,811,265 | 13.0 | % | 4.0 | % | Fixed | Yes | 28 | % | ||||||||||||||||
Sub of Private Co. G(5) | Funded | 4/30/2021 | 5/1/2026 | 65,400,000 | 15.6 | % | 50,398,476 | 12.5 | % | 1.8 | % | Floating | Yes | 21 | % | ||||||||||||||||
Sub of Private Co. H(6) | Funded | 5/11/2021 | 5/11/2023 | 5,781,250 | 1.4 | % | 5,781,250 | 15.0 | % | N/A | Fixed | No | 20 | % | |||||||||||||||||
Public Co. F(5) | Funded | 5/21/2021 | 5/30/2023 | 86,600,000 | 20.6 | % | 86,600,000 | 8.6 | % | N/A | Fixed | No | 11 | % | |||||||||||||||||
Private Co. I | Funded | 7/14/2021 | 8/1/2026 | 10,326,875 | 2.4 | % | 10,490,497 | 13.0 | % | 2.5 | % | Floating | Yes | 21 | % | ||||||||||||||||
Private Co. K | Funded | 8/20/2021 | 8/3/2026 | 19,750,000 | 4.7 | % | 7,000,000 | 13.0 | % | N/A | Floating | Yes | 18 | % | |||||||||||||||||
Private Co. J | Funded | 8/30/2021 | 9/1/2025 | 23,000,000 | 5.5 | % | 23,209,100 | 13.0 | % | 2.0 | % | Floating | Yes | 20 | % | ||||||||||||||||
Sub of Public Co. H | Funded | 12/16/2021 | 1/1/2026 | 60,000,000 | 14.3 | % | 42,500,000 | 9.8 | % | N/A | Fixed | No | 14 | % | |||||||||||||||||
SubTotal | $ | 420,083,125 | 100.0 | % | $ | 373,739,912 | 11.5 | % | 1.7 | % | 19 | % | |||||||||||||||||||
Wtd Average |
Loan Names | Original Funding Date(1) | Loan Maturity | AFCG Loan, net of Syndication | % of Total AFCG | Principal Balance as of 9/30/2022 | Cash Interest Rate | PIK | Fixed/ Floating | Amortization During Term | YTM (2)(3) | ||||||||||||||||||||||
Public Co. A - Real Estate Loan(4) | 7/3/2019 | 9/30/2023 | $ | 2,940,000 | 0.6 | % | $ | 1,198,639 | 7.5 | % | 7.5% | Fixed | No | 21 | % | |||||||||||||||||
Public Co. A - Equipment Loans | 8/5/2019 | 3/31/2025 | 4,000,000 | 0.8 | % | 2,222,339 | 12.0 | % | N/A | Fixed | Yes | 18 | % | |||||||||||||||||||
Private Co. A(5) | 5/8/2020 | 5/8/2024 | 77,785,000 | 15.5 | % | 79,772,976 | 12.8 | % | 2.7% | Fixed | Yes | 21 | % | |||||||||||||||||||
Private Co. B(6) | 9/10/2020 | 9/1/2023 | 16,402,988 | 3.3 | % | 14,603,908 | 14.7 | % | 4.0% | Fixed | Yes | 30 | % | |||||||||||||||||||
Private Co. C | 11/5/2020 | 12/1/2025 | 24,000,000 | 4.8 | % | 24,159,078 | 14.5 | % | 4.0% | Floating | Yes | 24 | % | |||||||||||||||||||
Sub of Private Co. G | 4/30/2021 | 5/1/2026 | 73,500,000 | 14.6 | % | 67,912,444 | 16.5 | % | N/A | Floating | Yes | 23 | % | |||||||||||||||||||
Sub of Private Co. H(7) | 5/11/2021 | 5/11/2023 | 5,781,250 | 1.2 | % | 5,781,250 | 15.0 | % | N/A | Fixed | No | 20 | % | |||||||||||||||||||
Public Co. F(8) | 5/21/2021 | 5/30/2023 | 86,600,000 | 17.2 | % | 86,600,000 | 8.6 | % | N/A | Fixed | No | 12 | % | |||||||||||||||||||
Private Co. I | 7/14/2021 | 8/1/2026 | 10,430,144 | 2.1 | % | 10,550,781 | 15.1 | % | 2.5% | Floating | Yes | 22 | % | |||||||||||||||||||
Private Co. K | 4/28/2022 | 5/3/2027 | 25,245,000 | 5.0 | % | 10,765,379 | 15.0 | % | N/A | Floating | Yes | 18 | % | |||||||||||||||||||
Private Co. J | 8/30/2021 | 9/1/2025 | 23,000,000 | 4.6 | % | 23,568,458 | 15.1 | % | 4.0% | Floating | Yes | 22 | % | |||||||||||||||||||
Sub of Public Co. H | 12/16/2021 | 1/1/2026 | 60,000,000 | 11.9 | % | 60,000,000 | 9.8 | % | N/A | Fixed | No | 14 | % | |||||||||||||||||||
Private Co. L | 4/20/2022 | 5/1/2026 | 82,500,000 | 16.4 | % | 50,000,000 | 12.0 | % | N/A | Fixed | Yes | 16 | % | |||||||||||||||||||
Sub of Public Co. M | 8/26/2022 | 8/27/2025 | 10,000,000 | 2.0 | % | 10,000,000 | 9.5 | % | N/A | Fixed | No | 14 | % | |||||||||||||||||||
SubTotal(9) | $ | 502,184,382 | 100.0 | % | $ | 447,135,252 | 12.4 | % | 1.1% | 19 | % | |||||||||||||||||||||
Wtd Average |
(5)PIK interest rate for Private Co. A represents a blended rate of differing PIK interest rates applicable to each of the three tranches to which we are a lender under the senior secured term loan credit facility with Private Company A (as may be amended, supplemented, amended and restated or otherwise modified from time to time, the ‘‘Private Company A Credit Facility’’). (6)Cash interest and PIK interest rates for Private Co. B are weighted average rates. (7)Loan to Subsidiary of Private Company H does not reflect the borrower’s option to request up to two maturity extensions each for an additional six months from the then-existing loan maturity date. The first extension, which is available at the borrower’s sole option, is subject to a payment of a 2.0% fee. The second extension is subject to the approval of all lenders. (8)Cash interest and PIK interest rates for Public Co. F represents a blended rate of differing cash interest and PIK interest rates applicable to each of the three tranches with differing rates. (9)The interest and PIK subtotal rates are weighted average rates. 40 |
Senior Notes | Issue Date | Amount Outstanding | Interest Rate Coupon | Maturity Date | Interest Due Dates | Optional Redemption Date | |||||||||||||||||||||||||||||||||
2027 Senior Notes | November 3, 2021 | $100.0 million | 5.75% | May 1, 2027 | May 1 and November 1 | February 1, 2027 |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Net Income | $ | 10,162,120 | $ | 1,400,755 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities and changes in operating assets and liabilities | (5,496,773 | ) | 970,030 | |||||
Net cash provided by (used in) operating activities | 4,665,347 | 2,370,785 | ||||||
Net cash provided by (used in) investing activities | (30,047,753 | ) | (6,885,056 | ) | ||||
Net cash provided by (used in) financing activities | (20,248,463 | ) | 121,684,423 | |||||
Change in cash and cash equivalents | $ | (45,630,869 | ) | $ | 117,170,152 |
September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net income | $ | 32,994,312 | $ | 13,959,222 | |||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities and changes in operating assets and liabilities | (5,538,246) | (6,353,478) | |||||||||
Net cash provided by (used in) operating activities | 27,456,066 | 7,605,744 | |||||||||
Net cash (used in) provided by investing activities | (68,520,844) | (121,463,591) | |||||||||
Net cash (used in) provided by financing activities | (31,861,647) | 174,208,418 | |||||||||
Change in cash and cash equivalents | $ | (72,926,425) | $ | 60,350,571 |
As of March 31, 2022 | ||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||
Unfunded commitments | $ | 49,438,020 | - | - | - | $ | 49,438,020 | |||||||||||||
Total | $ | 49,438,020 | - | - | - | $ | 49,438,020 |
As of December 31, 2021 | ||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||
Unfunded commitments | $ | 55,538,620 | - | - | - | $ | 55,538,620 | |||||||||||||
Total | $ | 55,538,620 | - | - | - | $ | 55,538,620 |
As of September 30, 2022 | |||||||||||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | |||||||||||||||||||||||||
Unfunded commitments | $ | 9,181,538 | $ | 46,979,621 | $ | — | $ | — | $ | 56,161,159 | |||||||||||||||||||
Total | $ | 9,181,538 | $ | 46,979,621 | $ | — | $ | — | $ | 56,161,159 |
As of March 31, 2022 | ||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||
Contractual obligations (1) | $ | 7,634,722 | $ | 11,500,000 | $ | 11,500,000 | $ | 100,958,333 | $ | 131,593,056 | ||||||||||
Total | $ | 7,634,722 | $ | 11,500,000 | $ | 11,500,000 | $ | 100,958,333 | $ | 131,593,056 |
As of December 31, 2021 | ||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||
Contractual obligations (1) | $ | 5,718,056 | $ | 11,500,000 | $ | 11,500,000 | $ | 102,875,000 | $ | 131,593,056 | ||||||||||
Total | $ | 5,718,056 | $ | 11,500,000 | $ | 11,500,000 | $ | 102,875,000 | $ | 131,593,056 |
As of September 30, 2022 | |||||||||||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | |||||||||||||||||||||||||
Contractual obligations(1) | $ | 7,666,667 | $ | 11,500,000 | $ | 109,583,333 | $ | — | $ | 128,750,000 | |||||||||||||||||||
Total | $ | 7,666,667 | $ | 11,500,000 | $ | 109,583,333 | $ | — | $ | 128,750,000 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 5. Other Information |
Exhibit No. | ||||||
Articles of Amendment and Restatement of AFC Gamma, Inc. (filed as Exhibit 3.2 to the Company’s Registration Statement on Form S-11 on January 22, 2021 and incorporated herein by reference). | ||||||
Articles of Amendment, dated March 10, 2022 (filed as Exhibit 3.1A to the Company’s Annual Report on Form 10-K on March 10, 2022 and incorporated herein by reference). | ||||||
Amended and Restated Bylaws of AFC Gamma, Inc. (filed as Exhibit 3.4 to the Company’s Registration Statement on Form S-11 on January 22, 2021 and incorporated herein by reference). | ||||||
First Amendment to Amended and Restated Management Agreement, dated March 10, 2022 by and between AFC Gamma, Inc. and AFC Management, LLC (filed as Exhibit 10.1A to the Company’s Annual Report on Form 10-K on March 10, 2022 and incorporated herein by reference). | ||||||
Second Amendment to Amended and Restated Management Agreement, dated November 7, 2022 by and between AFC Gamma, Inc. and AFC Management, LLC | ||||||
Loan and Security Agreement, dated April 29, 2022, by and among AFC Gamma, Inc., as Borrower, and the lenders that are party thereto (filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K on May 2, 2022 and incorporated herein by reference). | ||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Date: | ||||||||
AFC GAMMA, INC. | ||||||||
By: | /s/ Leonard M. Tannenbaum | |||||||
Leonard M. Tannenbaum | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
By: | /s/ Brett Kaufman | |||||||
Brett Kaufman | ||||||||
Chief Financial Officer and Treasurer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |