Chicago Atlantic Real Estate Finance (REFI) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 05, 2023
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		18,088,683
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, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
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

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Assets
Loans held for investment	$ 316,226,144	$ 339,273,538
Current expected credit loss reserve	(4,051,934)	(3,940,939)
Loans held for investment at carrying value, net	312,174,210	335,332,599
Cash	4,640,905	5,715,827
Interest receivable	4,159,748	1,204,412
Other receivables and assets, net	1,668,629	1,018,212
Related party receivables	237,885
Total Assets	322,881,377	343,271,050
Liabilities
Revolving loan	37,500,000	58,000,000
Dividend payable	8,667,701	13,618,591
Management and incentive fees payable	2,138,005	3,295,600
Related party payables	1,270,126	1,397,515
Accounts payable and other liabilities	962,153	1,058,128
Interest reserve	220,064	1,868,193
Total Liabilities	50,758,049	79,238,027
Commitments and contingencies (Note 8)
Stockholders’ equity
Common stock, par value $0.01 per share, 100,000,000 shares authorized and 18,088,683 and 17,766,936 shares issued and outstanding, respectively	180,887	176,859
Additional paid-in-capital	274,925,072	268,995,848
Accumulated earnings (deficit)	(2,982,631)	(5,139,684)
Total stockholders’ equity	272,123,328	264,033,023
Total liabilities and stockholders’ equity	$ 322,881,377	$ 343,271,050

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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	18,088,683	17,766,936
Common stock, shares outstanding	18,088,683	17,766,936

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues
Interest income	$ 16,527,304	$ 9,833,053
Interest expense	(1,618,296)	(72,268)
Net interest income	14,909,008	9,760,785
Expenses
Management and incentive fees, net	2,138,005	671,505
General and administrative expense	1,274,825	556,141
Professional fees	569,375	556,904
Stock based compensation	138,335	120,940
Provision for current expected credit losses	96,119	51,343
Total expenses	4,216,659	1,956,833
Net Income before income taxes	10,692,349	7,803,952
Income tax expense
Net Income	$ 10,692,349	$ 7,803,952
Earnings per common share:
Basic earnings per common share (in Dollars per share)	$ 0.6	$ 0.44
Diluted earnings per common share (in Dollars per share)	$ 0.6	$ 0.44
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in Shares)	17,879,444	17,641,090
Diluted weighted average shares of common stock outstanding (in Shares)	17,960,103	17,737,975

Consolidated Statements of Chan

Consolidated Statements of Change in Equity (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In-Capital	Accumulated Earnings
Balance at Dec. 31, 2021	$ 264,077,968	$ 173,551	$ 264,081,977	$ (177,560)
Balance (in Shares) at Dec. 31, 2021		17,453,553
Issuance of common stock, net of offering costs	4,481,556	$ 3,028	4,478,528
Issuance of common stock, net of offering costs (in Shares)		302,800
Stock-based compensation	121,915		120,940	975
Stock-based compensation (in Shares)		(3,750)
Dividends declared on common shares	(7,100,875)			(7,100,875)
Net income	7,803,952			7,803,952
Balance at Mar. 31, 2022	269,384,516	$ 176,579	268,681,445	526,492
Balance (in Shares) at Mar. 31, 2022		17,752,603
Balance at Dec. 31, 2022	264,033,023	$ 176,859	268,995,848	(5,139,684)
Balance (in Shares) at Dec. 31, 2022		17,766,936
Issuance of common stock in connection with initial public offering and concurrent private placement, net of offering costs, underwriting discounts and commissions	5,794,847	$ 3,958	5,790,889
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	139,389	$ 70	138,335	984
Stock-based compensation (in Shares)		(417)
Dividends declared on common shares	(8,536,280)			(8,536,280)
Net income	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		18,162,298

Consolidated Statements of Ch_2

Consolidated Statements of Change in Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared on common per shares	$ 0.47	$ 0.4

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income	$ 10,692,349	$ 7,803,952
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred loan origination fees and other discounts	(908,873)	(894,087)
Paid-in-kind interest	(2,256,228)	(970,569)
Provision for current expected credit losses	96,119	48,296
Amortization of deferred debt issuance costs	167,304	72,268
Stock based compensation	138,335	120,940
Changes in operating assets and liabilities:
Interest receivable	(2,955,336)	(175,960)
Other receivables and assets, net	(19,507)	(10,053)
Interest reserve	(1,648,129)	(3,084,470)
Related party payable	(127,389)
Related party receivable	(237,885)
Management and incentive fees payable	(1,157,595)	(233,618)
Accounts payable and accrued expenses	(81,098)	358,933
Net cash provided by operating activities	1,702,067	3,035,632
Cash flows from investing activities
Issuance of and fundings of loans	(32,941,660)	(82,794,575)
Proceeds from sales of loans	13,399,712
Principal repayment of loans	44,858,834	5,619,201
Net cash provided by/(used) in investing activities	25,316,886	(77,175,374)
Cash flows from financing activities
Proceeds from sale of common stock	6,000,010	4,505,664
Proceeds from borrowings on revolving loan	28,500,000
Repayment of borrowings on revolving loan	(49,000,000)
Dividends paid to common shareholders	(13,486,186)	(4,512,329)
Payment of deferred debt issuance costs	(2,988)
Payment of deferred offering costs	(104,711)	(23,941)
Net cash used in financing activities	(28,093,875)	(30,606)
Change in cash	(1,074,922)	(74,170,348)
Cash, beginning of period	5,715,827	80,248,526
Cash, end of period	4,640,905	6,078,178
Supplemental disclosure of non-cash financing and investing activity
Interest reserve withheld from funding of loan		3,919,974
OID withheld from funding of loans held for investment	1,118,340	1,128,415
Dividends declared and not yet paid	8,667,701	7,100,066
Supplemental information:
Interest paid during the period	$ 1,363,742

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2023
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 all 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. 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, which has a three-year initial term set to expire on April 30, 2024 (the “Management Agreement”), by and among the Company and the Manager. 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. 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 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, LLC (the “Sponsor”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
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 positions, 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, 2022. 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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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. Income Taxes The Company is a Maryland corporation and elected to be taxed as a REIT under the Code, commencing with its taxable year ended December 31, 2021. The Company believes 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 Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Interest expense was previously presented as an operating expense and has been reclassified as a reduction to net interest income on the consolidated statements of income. These reclassifications do not result in any changes to previously reported total assets, stockholder’s equity, and net income. Recent Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this ASU require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU’s amendments are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years and early adoption is permitted. The Company’s adoption of ASU 2022-02 on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements.

Loans Held For Investment, Net

Loans Held For Investment, Net	3 Months Ended
	Mar. 31, 2023
Loans Held For Investment, Net [Abstract]
LOANS HELD FOR INVESTMENT, NET	3. LOANS HELD FOR INVESTMENT, NET As of March 31, 2023 and December 31, 2022, the Company’s portfolio was comprised of loans to 24 and 22 portfolio companies, respectively, that the Company has the ability and intent to hold until maturity. The portfolio loans are held on the consolidated balance sheets at amortized cost. The Company’s aggregate loan commitments and outstanding principal were approximately $328.0 million and $320.2 million, respectively, as of March 31, 2023, and $351.4 million and $343.0 million as of December 31, 2022. During the three months ended March 31, 2023, the Company funded approximately $34.1 million in new loan principal. As of March 31, 2023 and December 31, 2022, approximately 88.0% and 83.1%, 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 discussed in the tables below. The carrying value of these loans was approximately $278.1 million and $281.6 million as of March 31, 2023 and December 31, 2022, respectively. The remaining 12.0% and 16.9% of the portfolio as of March 31, 2023 and December 31, 2022, respectively, was comprised of fixed rate loans that had a carrying value of approximately $38.1 million and $57.7 million. The following tables summarize the Company’s loans held for investment as of March 31, 2023 and December 31, 2022: As of March 31, 2023 Outstanding Original Issue Carrying Value (1) Weighted Senior Term Loans $ 320,191,407 $ (3,965,263 ) $ 316,226,144 2.0 Current expected credit loss reserve - - (4,051,934 ) Total loans held at carrying value, net $ 320,191,407 $ (3,965,263 ) $ 312,174,210 As of December 31, 2022 Outstanding Original Issue Carrying Weighted Senior Term Loans $ 343,029,334 $ (3,755,796 ) $ 339,273,538 2.2 Current expected credit loss reserve - - (3,940,939 ) Total loans held at carrying value, net $ 343,029,334 $ (3,755,796 ) $ 335,332,599 (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, 2023 and December 31, 2022, respectively. The following tables present changes in loans held at carrying value as of and for the three months ended March 31, 2023 and 2022. Principal Original Current Carrying 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 loans (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) 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) 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. Principal Original Current Carrying Balance at December 31, 2021 $ 200,632,056 $ (3,647,490 ) $ (134,542 ) $ 196,850,024 New fundings 86,725,308 (1,128,415 ) - 85,596,893 Principal repayment of loans (5,619,201 ) - - (5,619,201 ) Accretion of original issue discount - 894,087 - 894,087 PIK Interest 970,569 - - 970,569 Provision for credit losses - - (48,296 ) (48,296 ) Balance at March 31, 2022 $ 282,708,732 $ (3,881,818 ) $ (182,838 ) $ 278,644,076 (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. A more detailed listing of the Company’s loans held at carrying value based on information available as of March 31, 2023, is as follows: Loan Location Outstanding Principal(1) Original Issue Premium/(Discount) Carrying Value(1) Contractual Interest Rate(4) Maturity Date(2) Payment Terms(3) Initial 1 Various (7) $ 30,000,000 $ (804,164 ) $ 29,195,836 P + 6.50% (5) 10/30/2026 I/O 10/27/2022 2 Michigan 37,596,132 (141,850 ) 37,454,282 P + 6.65% (5)(6) 12/31/2024 P&I 3/5/2021 3 Various (7) 20,942,803 (543,917 ) 20,398,886 13.91% Cash (5) (9) 11/29/2024 P&I 3/25/2021 4 Arizona 12,075,490 - 12,075,490 18.72% (5)(8) 12/31/2023 P&I 4/19/2021 5 Massachusetts 2,666,000 - 2,666,000 P + 12.25% (5) 4/30/2025 P&I 4/19/2021 6 Michigan 4,275,000 (3,567 ) 4,271,433 P + 9.00% (5) 2/20/2024 P&I 8/20/2021 7 Various (7) 25,623,762 (220,990 ) 25,402,772 P + 6.00% (5) 6/30/2025 P&I 8/24/2021 8 West Virginia 10,535,399 (90,064 ) 10,445,335 19.25% PIK 9/1/2024 P&I 9/1/2021 9 Pennsylvania 16,013,359 - 16,013,359 P + 10.75% (5) 6/30/2024 P&I 9/3/2021 10 Michigan 235,205 - 235,205 11.00% 9/30/2024 P&I 9/20/2021 11 Maryland 32,809,285 (536,959 ) 32,272,326 P + 8.75% (5) 9/30/2024 I/O 9/30/2021 12 Various (7) 13,038,000 (107,499 ) 12,930,501 P + 9.25% (5) 10/31/2024 P&I 11/8/2021 13 Michigan 13,166,720 (108,112 ) 13,058,608 P + 6.00% (5) 11/1/2024 I/O 11/22/2021 14 Various (7) 5,194,514 - 5,194,514 P + 12.25% (5) 12/27/2026 P&I 12/27/2021 15 Michigan 3,835,398 (33,658 ) 3,801,740 P + 7.50% (5) 12/29/2023 I/O 12/29/2021 16 Various (7) 7,050,000 (43,824 ) 7,006,176 P + 9.25% (5) 12/31/2024 I/O 12/30/2021 17 Florida 15,000,000 (231,336 ) 14,768,664 P + 4.75% (5) 1/31/2025 P&I 1/18/2022 18 Ohio 12,677,075 (151,869 ) 12,525,206 P + 6.00% (5) 2/28/2025 P&I 2/3/2022 19 Florida 20,637,961 (70,061 ) 20,567,900 11.00% Cash, 3% PIK 8/29/2025 P&I 3/11/2022 20 Missouri 17,425,500 (120,385 ) 17,305,115 11.00% Cash, 2% PIK 5/30/2025 P&I 5/9/2022 21 Illinois 5,114,907 (73,499 ) 5,041,408 P + 8.50% (5) 6/30/2026 P&I 7/1/2022 22 Maryland 11,278,897 (633,736 ) 10,645,161 P + 5.75% (5) 1/24/2026 P&I 1/24/2023 23 Arizona 2,000,000 (49,773 ) 1,950,227 P + 7.50% (5) 3/31/2026 P&I 3/27/2023 24 Oregon 1,000,000 - 1,000,000 P + 10.50% (5) 9/27/2026 P&I 3/31/2023 Current expected credit loss reserve - - (4,051,934 ) Total loans held at carrying value $ 320,191,407 $ (3,965,263 ) $ 312,174,210 (1) The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discounts, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable. (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 as 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) P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term. (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) This Loan is subject to Prime Rate floor. (6) This Loan is subject to an interest rate cap (7) Loans with material collateral in multiple jurisdictions, namely multi-state operators, are disclosed as “various.” (8) The aggregate loan commitment to Loan #4 includes a $10.9 million initial advance, which has a base interest rate of 15.00%, and a second advance of $2.0 million, which has an interest rate of 39%. The statistics presented reflect the weighted average of the terms under both advances for the total aggregate loan commitment. (9) The aggregate loan commitment to Loan #3 includes a $15.9 million initial advance, which has a base interest rate of 13.625%, 2.75% PIK and a second advance 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 both advances for the total aggregate loan commitment. As of March 31, 2023, no loans have been placed on non-accrual status. Our loans are generally 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 $307,260,513 and $329,237,824 $10,035,714 The following tables summarize the significant unobservable inputs the Company used to value the loans categorized within Level 3 as of March 31, 2023. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values. As of March 31, 2023 Unobservable Input Fair Primary Input Estimated Weighted Senior term loans $ 307,260,513 Yield analysis Market yield 11.36% - 24.79% 17.53 % Total Investments $ 307,260,513 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 declines in risk ratings shown in the following table from December 31, 2022 to March 31, 2023 considered 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. This decline in risk ratings had an effect on the level of the current expected credit loss reserve, though the loans continued to perform as expected. For approximately 80% of the portfolio, the fair value of the underlying real estate collateral exceeded the amounts outstanding under the loans as of March 31, 2023. The remaining approximately 20% of the portfolio, while not fully collateralized by real estate, 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. As of March 31, 2023 and December 31, 2022, 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: As of March 31, 2023 As of December 31, 2022 Risk Rating 2023 2022 2021 2020 2019 Total 2022 2021 2020 2019 Total 1 $ - $ - $ 235,205 $ - $ - $ 235,205 $ - $ 274,406 $ - $ - $ 274,406 2 13,595,388 124,333,205 71,790,767 - - 209,719,360 94,467,449 88,444,868 29,140,546 - 212,052,863 3 - 12,525,206 65,657,524 - - 78,182,730 30,415,113 83,131,444 - - 113,546,557 4 - - 28,088,849 - - 28,088,849 - 13,399,712 - - 13,399,712 5 - - - - - - - - - - - Total $ 13,595,388 $ 136,858,411 $ 165,772,345 $ - $ - $ 316,226,144 $ 124,882,562 $ 185,250,430 $ 29,140,546 $ - $ 339,273,538 (1) Amounts are presented by loan origination year with subsequent advances shown in the original year of origination. 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, 2023 and December 31, 2022: As of March 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 $ - $ - $ 20,567,900 $ 17,305,115 $ - $ 235,205 $ 38,108,220 Floating-rate 66,411,639 48,285,685 23,375,836 37,454,282 12,075,490 90,514,992 278,117,924 $ 66,411,639 $ 48,285,685 $ 43,943,736 $ 54,759,397 $ 12,075,490 $ 90,750,197 $ 316,226,144 As of December 31, 2022 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 $ - $ - $ 20,406,737 $ 17,203,138 $ - $ 20,089,663 $ 57,699,538 Floating-rate 63,963,105 78,211,454 13,399,712 9,980,730 12,849,490 103,169,509 281,574,000 $ 63,963,105 $ 78,211,454 $ 33,806,449 $ 27,183,868 $ 12,849,490 $ 123,259,172 $ 339,273,538 (1) Real estate collateral coverage is calculated based upon most recent third-party appraised values. 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 three 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, 2023, to which the Manager may apply a private company discount based on the Company’s current borrower profile. These 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. 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, 2023 and 2022 is presented in the table below. Outstanding (1) Unfunded (2) Total Balance at December 31, 2022 $ 3,940,939 $ 94,415 $ 4,035,354 Provision for current expected credit losses 110,995 (14,876 ) 96,119 Balance at March 31, 2023 $ 4,051,934 $ 79,539 $ 4,131,473 Outstanding (1) Unfunded (2) Total Balance at December 31, 2021 $ 134,542 $ 13,407 $ 147,949 Provision for current expected credit losses 48,296 3,047 51,343 Balance at March 31, 2022 $ 182,838 $ 16,454 $ 199,292 (1) As of March 31, 2023, the CECL Reserve related to outstanding balances on loans at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets. (2) As of March 31, 2023, the CECL Reserve related to unfunded commitments on loans at carrying value is recorded within accounts payable and other accrued liabilities in the Company’s consolidated balance sheets. The Company has made an accounting policy election to exclude accrued interest receivable, ($4,159,748 and $1,204,412 as of March 31, 2023 and December 31, 2022, respectively) included in Interest Receivable on its consolidated balance sheet, 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.

Interest Receivable

Interest Receivable	3 Months Ended
	Mar. 31, 2023
Interest Receivable [Abstract]
INTEREST RECEIVABLE	4. INTEREST RECEIVABLE The following table summarizes the interest receivable by the Company as of March 31, 2023 and December 31, 2022: As of As of Interest receivable $ 4,113,589 $ 1,203,330 PIK interest receivable 33,548 1,082 Unused fees receivable 12,611 - Total interest receivable $ 4,159,748 $ 1,204,412 The following table presents aging analyses of past due loans by class as of March 31, 2023 and December 31, 2022, respectively: As of March 31, 2023 Current Loans (1) 31 - 60 Days 61 - 90 Days 90+ Days Non-Accrual Total Past Total Loans Interest receivable $ 3,754,242 $ 405,506 $ - $ - $ - $ 405,506 $ 4,159,748 Principal receivable 407,734 516,000 - - - 516,000 923,734 Total $ 4,161,976 $ 921,506 $ - $ - $ - $ 921,506 $ 5,083,482 As of December 31, 2022 Current (1) 31 - 60 Days 61 - 90 Days 90+ Days Non-Accrual Total Total Loans Interest receivable $ 1,203,088 $ 1,324 $ - $ - $ - $ 1,324 $ 1,204,412 Total $ 1,203,088 $ 1,324 $ - $ - $ - $ 1,324 $ 1,204,412 (1) Loans 1-30 days past due are included in the current loans. As of March 31, 2023, there were four loans with principal or interest greater than 30 days past due.

Interest Reserve

Interest Reserve	3 Months Ended
	Mar. 31, 2023
Interest Reserve [Abstract]
INTEREST RESERVE	5. INTEREST RESERVE At March 31, 2023 and December 31, 2022, the Company had one loan and three loans, respectively, that included a prepaid interest reserve. The following table presents changes in interest reserves as of March 31, 2023 and December 31, 2022, respectively: As of As of Beginning reserves $ 1,868,193 $ 6,636,553 New reserves - 9,049,834 Reserves disbursed (1,648,129 ) (13,818,194 ) Ending reserve $ 220,064 $ 1,868,193

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
DEBT	6. DEBT In May 2021, in connection with the Company’s acquisition of its wholly-owned financing subsidiary, CAL, the Company was assigned a secured revolving credit facility (the “Revolving Loan”). 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 December 16, 2021, CAL entered into an amended and restated Revolving Loan agreement (the “First Amendment and Restatement”). The First Amendment and Restatement increased the loan commitment from $10,000,000 to $45,000,000 and decreased the interest rate, from the greater of the (1) Prime Rate plus 1.00% and (2) 4.75% to the greater of (1) the Prime Rate plus the applicable margin and (2) 3.25%. The applicable margin is derived from a floating rate grid based upon the ratio of debt to equity of CAL and increases from 0% at a ratio of 0.25 to 1 to 1.25% at a ratio of 1.5 to 1. The First Amendment and Restatement also extended the maturity date from February 12, 2023 to the earlier of (i) December 16, 2023 and (ii) the date on which the Revolving Loan is terminated pursuant to the terms of the Revolving Loan agreement. The Company has the option to extend the initial term for an additional one-year term, provided no events of default exist and the Company provides the required notice of the extension pursuant to the First Amendment and Restatement. The Company incurred debt issuance costs of $859,500 related to the First Amendment and Restatement, which were capitalized and are subsequently being amortized through maturity. On May 12, 2022, CAL entered into a second amended and restated Revolving Loan agreement (the “Second Amendment and Restatement”). The Second Amendment and Restatement increased the loan commitment from $45,000,000 to $65,000,000. No other material terms of the Revolving Loan were modified as a result of the execution of the Second Amendment and Restatement. The Company incurred debt issuance costs of $177,261 related to the Second Amendment and Restatement, which were capitalized and are subsequently amortized through maturity. On November 7, 2022, CAL entered into a third amended and restated Revolving Loan agreement (the “Third Amendment and Restatement”). The Third Amendment and Restatement increased the loan commitment from $65,000,000 to $92,500,000. No other material terms of the Revolving Loan were modified as a result of the execution of the Third Amendment and Restatement. The Company incurred debt issuance costs of $323,779 related to the Third Amendment and Restatement, which were capitalized and are subsequently amortized through maturity. 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. As of March 31, 2023 and December 31, 2022, unamortized debt issuance costs related to the Revolving Loan, including all amendments and amendments and restatements thereto, as applicable, of $641,279 and $805,596, respectively, are recorded in other receivables and assets, net on the consolidated balance sheets. The Revolving Loan incurs unused fees at a rate of 0.25% per annum which began on July 1, 2022 pursuant to the Second Amendment and Restatement. Additionally, as of and for the three months ended March 31, 2023, the Company borrowed $37.5 million against the Revolving Loan, incurred an effective interest rate of 7.75% including the unused fee rate of 0.25%, and had $55.0 million available under the Revolving Loan. 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, 2023, the Company is in compliance with all financial covenants with respect to the Revolving Loan. The fair value of the Revolving Loan, which is classified as Level 2 in the fair value hierarchy, approximates the carrying value as it bears a market rate of interest that is reset frequently. The following table reflects a summary of interest expense incurred during the three months ended March 31, 2023 and 2022. Three months Three months March 31, March 31, Interest expense $ 1,440,992 $ - Unused fee expense 10,000 - Amortization of deferred financing costs 167,304 72,268 Total interest expense $ 1,618,296 $ 72,268

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	7. RELATED PARTY TRANSACTIONS Management Agreement Pursuant to the Management Agreement, the Manager will manage the loans and day-to-day operations of the Company, subject at all times to the further terms and conditions set forth in the Management Agreement and such further limitations or parameters as may be imposed from time to time by the Company’s Board. The Manager 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, 2023 and 2022, the Base Management Fee payable was reduced by Outside Fees in the amount of $5,000 and $717,750, 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, 2023 and 2022 was $1,111,206 and $382,143, 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, 2023 and 2022. For the For the Affiliate Payments Management fees earned $ 1,031,799 $ 1,007,112 Less: Outside fees earned (5,000 ) (717,750 ) Base management fee, net 1,026,799 289,362 Incentive fees 1,111,206 382,143 Total management and incentive fees earned 2,138,005 671,505 General and administrative expenses reimbursable to Manager 1,176,376 411,521 Total $ 3,314,381 $ 1,083,026 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, 2023 and December 31, 2022. Amounts payable to the Manager as of March 31, 2023 and December 31, 2022 were approximately $3.4 million and $4.7 million, respectively, which included bonuses accrued which are not reimbursed to the Manager until paid. 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, 2023 and December 31, 2022, 18 and 15 of the Company’s loans were co-invested by affiliates of the Company, respectively. In connection with investments in loans, the Company may receive the option to assign the right (the “Assigned Right”) to acquire warrants and/or equity of the borrower. The Company may sell the Assigned Right, and the sale may be to an affiliate of the Company. The proceeds from the sale of Assigned Rights are accounted for as additional original issue discount and accreted over the life of the related loans. During the three months ended March 31, 2022, the Company neither received nor sold any Assigned Right. During the three months ended 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 selling price of approximately $13.7 million was approved by the audit committee of the Board. The fair value approximated the carrying value of the loan plus accrued and unpaid interest through March 31, 2023. In addition, the Company purchased and subsequently sold a senior secured loan from an affiliate under common control with our Manager. The purchase and selling price of approximately $19.0 million was approved by the audit committee of the Board. The fair value approximated the carrying value of the loan plus accrued and unpaid interest through March 30, 2023.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
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, 2023 and December 31, 2022, the Company had the following unfunded commitments on existing loans. As of As of Total original loan commitments $ 327,954,423 $ 351,367,706 Less: drawn commitments (313,720,423 ) (336,323,706 ) Total undrawn commitments $ 14,234,000 $ 15,044,000 Refer to “Note 3 – Loans Held for Investment, Net” for further information regarding the CECL Reserve attributed to unfunded commitments. The following table summarizes our material commitments as of March 31, 2023: Commitments due by period Total 2023 2024 2025 2026 2027 Thereafter Undrawn commitments $ 14,234,000 $ 2,400,000 $ 7,000,000 $ 834,000 $ 4,000,000 $ - $ - Revolving loan 37,500,000 - 37,500,000 - - - - Total $ 51,734,000 $ 2,400,000 $ 44,500,000 $ 834,000 $ 4,000,000 $ - $ - Other Contingencies The Company from time to time may be a party to litigation in the normal course of business. As of March 31, 2023, 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
STOCKHOLDERS’ EQUITY	9. STOCKHOLDERS’ EQUITY Common Stock On January 5, 2022, the underwriters of the Company’s initial public offering (the “IPO”) partially exercised their over-allotment option to purchase 302,800 shares of the Company’s common stock at a price of $16.00 per share, raising $4,844,800 in additional gross proceeds or $4,505,664 in net proceeds after underwriting commissions of $339,136, which is reflected as a reduction of additional paid-in capital on the consolidated statements of stockholders’ equity. 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 approved restricted stock award grants of 98,440 shares of common stock during the quarter ended December 31, 2021. The Compensation Committee appointed by 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. On December 31, 2022, restricted stock award grants of 24,880 shares of common stock were granted to members of the Board with a vesting period of three years. Pursuant to each respective award agreement, restricted stock awards (“RSA’s”) generally vest either quarterly or annually over a one to three year period beginning on the first anniversary of the date of the grant. Upon vesting, the vested restricted stock awards are exchanged for an equal number of the Company’s common stock. As of March 31, 2023 and December 31, 2022, 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 417 and 3,750 shares forfeited during the three months ended March 31, 2023 and 2022, respectively. There is no forfeiture rate applied to awards or options granted to non-employee directors or executive employees because their pre-vesting forfeitures are anticipated to be highly unlikely. 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, 2023, the aggregate intrinsic value of our restricted stock awards was as follows: As of March 31, Outstanding Vested Aggregate intrinsic value $ 994,539 $ 472,728 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, 2023 and 2022. Three months Grant Date Fair Value per Share Balance at December 31, 2022 80,984 $ 15.71 Vested (6,952 ) $ 16.00 Forfeited (417 ) $ 16.00 Balance 73,615 $ 15.68 Three months Grant Date Fair Value per Share Balance at December 31, 2021 98,440 $ 16.00 Forfeited (3,750 ) $ 16.00 Balance 94,690 $ 16.00 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 $138,335 and $120,940 for the three months ended March 31, 2023 and 2022, respectively. The unamortized share-based compensation expense for the Company was approximately $1.1 million and $1.6 million for the three months ended March 31, 2023 and 2022, respectively, which the Company expects to recognize over the remaining weighted-average term of 2.1 years.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2023
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, 2023 and 2022, respectively: For the three For the three March 31, March 31, Net income attributable to common stockholders $ 10,692,349 $ 7,803,952 Divided by: Basic weighted average shares of common stock outstanding 17,879,444 $ 17,641,090 Diluted weighted average shares of common stock outstanding 17,960,103 $ 17,737,975 Basic earnings per common share $ 0.60 $ 0.44 Diluted earnings per common share $ 0.60 $ 0.44 There were no anti-dilutive shares excluded from the computations of earnings per common share for the three months ended March 31, 2023 and 2022.

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [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, 2023 and the year ended December 31, 2022, we did not incur excise tax expense. The income tax provision for the Company was $0 for the three months ended March 31, 2023 and 2022, respectively. For the three months ended March 31, 2023 and 2022, the Company incurred no expense for United States federal 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 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. As of March 31, 2023 and December 31, 2022, the Company does not have any unrecognized tax benefits.

Dividends and Distributions

Dividends and Distributions	3 Months Ended
	Mar. 31, 2023
Dividends and Distributions [Abstract]
DIVIDENDS AND DISTRIBUTIONS	12. DIVIDENDS AND DISTRIBUTIONS The following table summarizes the Company’s dividends declared during the three months ended March 31, 2023 and 2022. 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 Record Date Payment Date Common Share Distribution Amount Taxable Ordinary Income Return of Capital Section 199A Dividends Regular cash dividend 3/31/2022 4/14/2022 $ 0.40 $ 0.40 $ - $ 0.40 Total cash dividend $ 0.40 $ 0.40 $ - $ 0.40

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	13. SUBSEQUENT EVENTS Normal Course of Business Operations During the period from April 1, 2023 through May 9, 2023, the Company funded one loan advance amounting to approximately $0.6 million in loan principal to an existing portfolio company. Payment of Dividend On April 14, 2023, the Company paid its regular quarterly dividend of $0.47 relating to the first quarter of 2023 to shareholders of record as of the close of business on March 31, 2023. The total amount of the cash dividend payment was approximately $8.5 million.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2023
Organization and Description of Business [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 positions, 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, 2022. 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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
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.
Income Taxes	Income Taxes The Company is a Maryland corporation and elected to be taxed as a REIT under the Code, commencing with its taxable year ended December 31, 2021. The Company believes 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
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Interest expense was previously presented as an operating expense and has been reclassified as a reduction to net interest income on the consolidated statements of income. These reclassifications do not result in any changes to previously reported total assets, stockholder’s equity, and net income.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this ASU require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU’s amendments are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years and early adoption is permitted. The Company’s adoption of ASU 2022-02 on January 1, 2023 did not have a material impact on the Company’s consolidated financial statements.

Loans Held For Investment, Net

Loans Held For Investment, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Loans Held For Investment, Net [Abstract]
Schedule of loans held for investment	As of March 31, 2023 Outstanding Original Issue Carrying Value (1) Weighted Senior Term Loans $ 320,191,407 $ (3,965,263 ) $ 316,226,144 2.0 Current expected credit loss reserve - - (4,051,934 ) Total loans held at carrying value, net $ 320,191,407 $ (3,965,263 ) $ 312,174,210 As of December 31, 2022 Outstanding Original Issue Carrying Weighted Senior Term Loans $ 343,029,334 $ (3,755,796 ) $ 339,273,538 2.2 Current expected credit loss reserve - - (3,940,939 ) Total loans held at carrying value, net $ 343,029,334 $ (3,755,796 ) $ 335,332,599 (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, 2023 and December 31, 2022, respectively. (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) 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.
Schedule of changes in loans held at carrying value	Principal Original Current Carrying 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 loans (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) 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) 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. Principal Original Current Carrying Balance at December 31, 2021 $ 200,632,056 $ (3,647,490 ) $ (134,542 ) $ 196,850,024 New fundings 86,725,308 (1,128,415 ) - 85,596,893 Principal repayment of loans (5,619,201 ) - - (5,619,201 ) Accretion of original issue discount - 894,087 - 894,087 PIK Interest 970,569 - - 970,569 Provision for credit losses - - (48,296 ) (48,296 ) Balance at March 31, 2022 $ 282,708,732 $ (3,881,818 ) $ (182,838 ) $ 278,644,076
Schedule of loans held at carrying value based on information	Loan Location Outstanding Principal(1) Original Issue Premium/(Discount) Carrying Value(1) Contractual Interest Rate(4) Maturity Date(2) Payment Terms(3) Initial 1 Various (7) $ 30,000,000 $ (804,164 ) $ 29,195,836 P + 6.50% (5) 10/30/2026 I/O 10/27/2022 2 Michigan 37,596,132 (141,850 ) 37,454,282 P + 6.65% (5)(6) 12/31/2024 P&I 3/5/2021 3 Various (7) 20,942,803 (543,917 ) 20,398,886 13.91% Cash (5) (9) 11/29/2024 P&I 3/25/2021 4 Arizona 12,075,490 - 12,075,490 18.72% (5)(8) 12/31/2023 P&I 4/19/2021 5 Massachusetts 2,666,000 - 2,666,000 P + 12.25% (5) 4/30/2025 P&I 4/19/2021 6 Michigan 4,275,000 (3,567 ) 4,271,433 P + 9.00% (5) 2/20/2024 P&I 8/20/2021 7 Various (7) 25,623,762 (220,990 ) 25,402,772 P + 6.00% (5) 6/30/2025 P&I 8/24/2021 8 West Virginia 10,535,399 (90,064 ) 10,445,335 19.25% PIK 9/1/2024 P&I 9/1/2021 9 Pennsylvania 16,013,359 - 16,013,359 P + 10.75% (5) 6/30/2024 P&I 9/3/2021 10 Michigan 235,205 - 235,205 11.00% 9/30/2024 P&I 9/20/2021 11 Maryland 32,809,285 (536,959 ) 32,272,326 P + 8.75% (5) 9/30/2024 I/O 9/30/2021 12 Various (7) 13,038,000 (107,499 ) 12,930,501 P + 9.25% (5) 10/31/2024 P&I 11/8/2021 13 Michigan 13,166,720 (108,112 ) 13,058,608 P + 6.00% (5) 11/1/2024 I/O 11/22/2021 14 Various (7) 5,194,514 - 5,194,514 P + 12.25% (5) 12/27/2026 P&I 12/27/2021 15 Michigan 3,835,398 (33,658 ) 3,801,740 P + 7.50% (5) 12/29/2023 I/O 12/29/2021 16 Various (7) 7,050,000 (43,824 ) 7,006,176 P + 9.25% (5) 12/31/2024 I/O 12/30/2021 17 Florida 15,000,000 (231,336 ) 14,768,664 P + 4.75% (5) 1/31/2025 P&I 1/18/2022 18 Ohio 12,677,075 (151,869 ) 12,525,206 P + 6.00% (5) 2/28/2025 P&I 2/3/2022 19 Florida 20,637,961 (70,061 ) 20,567,900 11.00% Cash, 3% PIK 8/29/2025 P&I 3/11/2022 20 Missouri 17,425,500 (120,385 ) 17,305,115 11.00% Cash, 2% PIK 5/30/2025 P&I 5/9/2022 21 Illinois 5,114,907 (73,499 ) 5,041,408 P + 8.50% (5) 6/30/2026 P&I 7/1/2022 22 Maryland 11,278,897 (633,736 ) 10,645,161 P + 5.75% (5) 1/24/2026 P&I 1/24/2023 23 Arizona 2,000,000 (49,773 ) 1,950,227 P + 7.50% (5) 3/31/2026 P&I 3/27/2023 24 Oregon 1,000,000 - 1,000,000 P + 10.50% (5) 9/27/2026 P&I 3/31/2023 Current expected credit loss reserve - - (4,051,934 ) Total loans held at carrying value $ 320,191,407 $ (3,965,263 ) $ 312,174,210 (1) The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discounts, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable. (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 as 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) P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term. (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) This Loan is subject to Prime Rate floor. (6) This Loan is subject to an interest rate cap (7) Loans with material collateral in multiple jurisdictions, namely multi-state operators, are disclosed as “various.” (8) The aggregate loan commitment to Loan #4 includes a $10.9 million initial advance, which has a base interest rate of 15.00%, and a second advance of $2.0 million, which has an interest rate of 39%. The statistics presented reflect the weighted average of the terms under both advances for the total aggregate loan commitment. (9) The aggregate loan commitment to Loan #3 includes a $15.9 million initial advance, which has a base interest rate of 13.625%, 2.75% PIK and a second advance 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 both advances for the total aggregate loan commitment.
Schedule of significant unobservable inputs	As of March 31, 2023 Unobservable Input Fair Primary Input Estimated Weighted Senior term loans $ 307,260,513 Yield analysis Market yield 11.36% - 24.79% 17.53 % Total Investments $ 307,260,513
Schedule of risk rating	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, 2023 As of December 31, 2022 Risk Rating 2023 2022 2021 2020 2019 Total 2022 2021 2020 2019 Total 1 $ - $ - $ 235,205 $ - $ - $ 235,205 $ - $ 274,406 $ - $ - $ 274,406 2 13,595,388 124,333,205 71,790,767 - - 209,719,360 94,467,449 88,444,868 29,140,546 - 212,052,863 3 - 12,525,206 65,657,524 - - 78,182,730 30,415,113 83,131,444 - - 113,546,557 4 - - 28,088,849 - - 28,088,849 - 13,399,712 - - 13,399,712 5 - - - - - - - - - - - Total $ 13,595,388 $ 136,858,411 $ 165,772,345 $ - $ - $ 316,226,144 $ 124,882,562 $ 185,250,430 $ 29,140,546 $ - $ 339,273,538 (1) Amounts are presented by loan origination year with subsequent advances shown in the original year of origination.
Schedule of real estate collateral coverage	As of March 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 $ - $ - $ 20,567,900 $ 17,305,115 $ - $ 235,205 $ 38,108,220 Floating-rate 66,411,639 48,285,685 23,375,836 37,454,282 12,075,490 90,514,992 278,117,924 $ 66,411,639 $ 48,285,685 $ 43,943,736 $ 54,759,397 $ 12,075,490 $ 90,750,197 $ 316,226,144 As of December 31, 2022 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 $ - $ - $ 20,406,737 $ 17,203,138 $ - $ 20,089,663 $ 57,699,538 Floating-rate 63,963,105 78,211,454 13,399,712 9,980,730 12,849,490 103,169,509 281,574,000 $ 63,963,105 $ 78,211,454 $ 33,806,449 $ 27,183,868 $ 12,849,490 $ 123,259,172 $ 339,273,538 (1) Real estate collateral coverage is calculated based upon most recent third-party appraised values.
Schedule of activity related to the CECL Reserve for outstanding balances	Outstanding (1) Unfunded (2) Total Balance at December 31, 2022 $ 3,940,939 $ 94,415 $ 4,035,354 Provision for current expected credit losses 110,995 (14,876 ) 96,119 Balance at March 31, 2023 $ 4,051,934 $ 79,539 $ 4,131,473 Outstanding (1) Unfunded (2) Total Balance at December 31, 2021 $ 134,542 $ 13,407 $ 147,949 Provision for current expected credit losses 48,296 3,047 51,343 Balance at March 31, 2022 $ 182,838 $ 16,454 $ 199,292 (1) As of March 31, 2023, the CECL Reserve related to outstanding balances on loans at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets. (2) As of March 31, 2023, the CECL Reserve related to unfunded commitments on loans at carrying value is recorded within accounts payable and other accrued liabilities in the Company’s consolidated balance sheets.

Interest Receivable (Tables)

Interest Receivable (Tables)	3 Months Ended
	Mar. 31, 2023
Interest Receivable [Abstract]
Schedule of summarizes the interest receivable	As of As of Interest receivable $ 4,113,589 $ 1,203,330 PIK interest receivable 33,548 1,082 Unused fees receivable 12,611 - Total interest receivable $ 4,159,748 $ 1,204,412
Schedule of including non-accrual loans	As of March 31, 2023 Current Loans (1) 31 - 60 Days 61 - 90 Days 90+ Days Non-Accrual Total Past Total Loans Interest receivable $ 3,754,242 $ 405,506 $ - $ - $ - $ 405,506 $ 4,159,748 Principal receivable 407,734 516,000 - - - 516,000 923,734 Total $ 4,161,976 $ 921,506 $ - $ - $ - $ 921,506 $ 5,083,482 As of December 31, 2022 Current (1) 31 - 60 Days 61 - 90 Days 90+ Days Non-Accrual Total Total Loans Interest receivable $ 1,203,088 $ 1,324 $ - $ - $ - $ 1,324 $ 1,204,412 Total $ 1,203,088 $ 1,324 $ - $ - $ - $ 1,324 $ 1,204,412 (1) Loans 1-30 days past due are included in the current loans.

Interest Reserve (Tables)

Interest Reserve (Tables)	3 Months Ended
	Mar. 31, 2023
Interest Reserve [Abstract]
Schedule of changes in interest reserves	As of As of Beginning reserves $ 1,868,193 $ 6,636,553 New reserves - 9,049,834 Reserves disbursed (1,648,129 ) (13,818,194 ) Ending reserve $ 220,064 $ 1,868,193

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of summary of interest expense incurred during period	Three months Three months March 31, March 31, Interest expense $ 1,440,992 $ - Unused fee expense 10,000 - Amortization of deferred financing costs 167,304 72,268 Total interest expense $ 1,618,296 $ 72,268

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Schedule of summarizes the related party fees and expenses	For the For the Affiliate Payments Management fees earned $ 1,031,799 $ 1,007,112 Less: Outside fees earned (5,000 ) (717,750 ) Base management fee, net 1,026,799 289,362 Incentive fees 1,111,206 382,143 Total management and incentive fees earned 2,138,005 671,505 General and administrative expenses reimbursable to Manager 1,176,376 411,521 Total $ 3,314,381 $ 1,083,026

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of unfunded commitments on existing loans	As of As of Total original loan commitments $ 327,954,423 $ 351,367,706 Less: drawn commitments (313,720,423 ) (336,323,706 ) Total undrawn commitments $ 14,234,000 $ 15,044,000
Schedule of material commitments	Commitments due by period Total 2023 2024 2025 2026 2027 Thereafter Undrawn commitments $ 14,234,000 $ 2,400,000 $ 7,000,000 $ 834,000 $ 4,000,000 $ - $ - Revolving loan 37,500,000 - 37,500,000 - - - - Total $ 51,734,000 $ 2,400,000 $ 44,500,000 $ 834,000 $ 4,000,000 $ - $ -

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Schedule of restricted stock awards	As of March 31, Outstanding Vested Aggregate intrinsic value $ 994,539 $ 472,728
Schedule of restricted stock activity	Three months Grant Date Fair Value per Share Balance at December 31, 2022 80,984 $ 15.71 Vested (6,952 ) $ 16.00 Forfeited (417 ) $ 16.00 Balance 73,615 $ 15.68 Three months Grant Date Fair Value per Share Balance at December 31, 2021 98,440 $ 16.00 Forfeited (3,750 ) $ 16.00 Balance 94,690 $ 16.00

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of basic earnings per common share	For the three For the three March 31, March 31, Net income attributable to common stockholders $ 10,692,349 $ 7,803,952 Divided by: Basic weighted average shares of common stock outstanding 17,879,444 $ 17,641,090 Diluted weighted average shares of common stock outstanding 17,960,103 $ 17,737,975 Basic earnings per common share $ 0.60 $ 0.44 Diluted earnings per common share $ 0.60 $ 0.44

Dividends and Distributions (Ta

Dividends and Distributions (Tables)	3 Months Ended
	Mar. 31, 2023
Dividends and Distributions [Abstract]
Schedule of dividends declared	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 Record Date Payment Date Common Share Distribution Amount Taxable Ordinary Income Return of Capital Section 199A Dividends Regular cash dividend 3/31/2022 4/14/2022 $ 0.40 $ 0.40 $ - $ 0.40 Total cash dividend $ 0.40 $ 0.40 $ - $ 0.40

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2023
Organization and Description of Business [Abstract]
Least percentage	90%
Taxable income percentage	100%
Ordinary income percentage	85%
Capital gain net income percentage	95%
Excise tax equal percentage	4%
Net capital gains percentage	90%
Excise tax percentage	4%

Loans Held For Investment, Ne_2

Loans Held For Investment, Net (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Loans Held For Investment, Net (Details) [Line Items]
Portfolio comprised loans	$ 24	$ 22
Outstanding principal	328,000,000	320,200,000
Aggregate loan commitments	351,400,000	$ 343,000,000
New loan principal	$ 34,100,000
Floating rate loans percentage	88%	83.10%
Loan carrying value	$ 278,100,000	$ 281,600,000
Portfolio percentage	12%	16.90%
Fixed rate loans	$ 38,100,000	$ 57,700,000
Interest rate	2%
Loan interest rate	39%
Aggregate fair value	$ 307,260,513	329,237,824
Unrecognized holding gain	$ 8,965,632	10,035,714
Weighted average discount percentage	17.53%
Accrued interest receivable	$ 4,159,748	$ 1,204,412
Minimum [Member]
Loans Held For Investment, Net (Details) [Line Items]
Floating rate loans percentage	20%
Discount rates percentage	11.36%
Maximum [Member]
Loans Held For Investment, Net (Details) [Line Items]
Floating rate loans percentage	80%
Discount rates percentage	24.79%
PIK Initial Rate [Member]
Loans Held For Investment, Net (Details) [Line Items]
Aggregate loan	$ 15,900,000
Base Three [Member] | Loans [Member]
Loans Held For Investment, Net (Details) [Line Items]
Aggregate loan	$ 10,900,000
Interest rate	15%
Second Commitment [Member]
Loans Held For Investment, Net (Details) [Line Items]
Aggregate loan	$ 2,000,000
Base Ten [Member] | One Commitment [Member]
Loans Held For Investment, Net (Details) [Line Items]
Interest rate	13.625%
PIK [Member]
Loans Held For Investment, Net (Details) [Line Items]
Interest rate	2.75%
PIK Equal Rate [Member]
Loans Held For Investment, Net (Details) [Line Items]
Aggregate loan	$ 4,200,000
Interest rate	15%

Loans Held For Investment, Ne_3

Loans Held For Investment, Net (Details) - Schedule of loans held for investment - USD ($)		3 Months Ended	12 Months Ended
		Mar. 31, 2023	Dec. 31, 2022
Loans Held For Investment, Net (Details) - Schedule of loans held for investment [Line Items]
Total loans held at carrying value, Outstanding Principal	[1]	$ 320,191,407	$ 343,029,334
Total loans held at carrying value, Original Issue Discount		(3,965,263)	(3,755,796)
Total loans held at carrying value, Carrying Value	[1]	312,174,210	335,332,599
Senior Term Loans [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held for investment [Line Items]
Total loans held at carrying value, Outstanding Principal	[1]	320,191,407	343,029,334
Total loans held at carrying value, Original Issue Discount		(3,965,263)	(3,755,796)
Total loans held at carrying value, Carrying Value	[1]	$ 316,226,144	$ 339,273,538
Total loans held at carrying value, Weighted Average Remaining Life (Years)	[2]	2 years	2 years 2 months 12 days
Current expected credit loss reserve [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held for investment [Line Items]
Total loans held at carrying value, Outstanding Principal	[1]
Total loans held at carrying value, Original Issue Discount
Total loans held at carrying value, Carrying Value	[1]	$ (4,051,934)	$ (3,940,939)
[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. Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2023 and December 31, 2022, respectively.

Loans Held For Investment, Ne_4

Loans Held For Investment, Net (Details) - Schedule of changes in loans held at carrying value - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Principal [Member]
Debt Instrument [Line Items]
Principal, Beginning	$ 343,029,334	$ 200,632,056
Principal New fundings	34,060,000	86,725,308
Principal repayment of loans	(45,754,443)	(5,619,201)
Principal Accretion of original issue discount
Principal Sale of loans	(13,399,712)
Principal PIK Interest	2,256,228	970,569
Principal Provision for credit losses
Principal Current expected credit loss reserve
Principal, Ending	320,191,407	282,708,732
Original Issue Discount [Member]
Debt Instrument [Line Items]
Original Issue Discount, Beginning	(3,755,796)	(3,647,490)
Original Issue Discount New fundings	(1,118,340)	(1,128,415)
Original Issue Discount Principal repayment of loans
Original Issue Discount Accretion of original issue discount	908,873	894,087
Original Issue Discount Sale of loans
Original Issue Discount PIK Interest
Original Issue Discount Provision for credit losses
Original Issue Discount Current expected credit loss reserve
Original Issue Discount, Ending	(3,965,263)	(3,881,818)
Current expected credit loss reserve [Member]
Debt Instrument [Line Items]
Current Expected Credit Loss Reserve, Beginning	(3,940,939)	(134,542)
Current Expected Credit Loss Reserve New fundings
Current Expected Credit Loss Reserve Principal repayment of loans
Current Expected Credit Loss Reserve Accretion of original issue discount
Current Expected Credit Loss Reserve Sale of loans
Current Expected Credit Loss Reserve PIK Interest
Current Expected Credit Loss Reserve Provision for credit losses		(48,296)
Current Expected Credit Loss Reserve Current expected credit loss reserve	(110,995)
Current Expected Credit Loss Reserve, Ending	(4,051,934)	(182,838)
Carrying Value [Member]
Debt Instrument [Line Items]
Carrying Value, Beginning	335,332,599	196,850,024
Carrying Value New fundings	32,941,660	85,596,893
Carrying Value Principal repayment of loans	(45,754,443)	(5,619,201)
Carrying Value Accretion of original issue discount	908,873	894,087
Carrying Value Sale of loans	(13,399,712)
Carrying Value PIK Interest	2,256,228	970,569
Carrying Value Provision for credit losses		(48,296)
Carrying Value Current expected credit loss reserve	(110,995)
Carrying Value, Ending	$ 312,174,210	$ 278,644,076

Loans Held For Investment, Ne_5

Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information	3 Months Ended
	Mar. 31, 2023 USD ($)
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Outstanding Principal	$ 320,191,407	[1]
Original Issue Premium/(Discount)	(3,965,263)
Carrying Value	$ 312,174,210	[1]
Various [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Various(7)	[2]
Outstanding Principal	$ 30,000,000	[1]
Original Issue Premium/(Discount)	(804,164)
Carrying Value	$ 29,195,836	[1]
Contractual Interest Rate	P + 6.50%(5)	[3],[4]
Maturity Date	10/30/2026	[5]
Payment Terms	I/O	[6]
Initial Funding Date	10/27/2022	[1]
Michigan One [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Michigan
Outstanding Principal	$ 37,596,132	[1]
Original Issue Premium/(Discount)	(141,850)
Carrying Value	$ 37,454,282	[1]
Contractual Interest Rate	P + 6.65%(5)(6) Cash, 4.25% PIK	[3],[4],[7]
Maturity Date	12/31/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	3/5/2021	[1]
Various One [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Various(7)	[2]
Outstanding Principal	$ 20,942,803	[1]
Original Issue Premium/(Discount)	(543,917)
Carrying Value	$ 20,398,886	[1]
Contractual Interest Rate	13.91% Cash(5), 2.59% PIK(9)	[3],[4],[8]
Maturity Date	11/29/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	3/25/2021	[1]
Arizona [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Arizona
Outstanding Principal	$ 12,075,490	[1]
Original Issue Premium/(Discount)
Carrying Value	$ 12,075,490	[1]
Contractual Interest Rate	18.72%(5)(8)	[3],[4],[9]
Maturity Date	12/31/2023	[5]
Payment Terms	P&I	[6]
Initial Funding Date	4/19/2021	[1]
Massachusetts [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Massachusetts
Outstanding Principal	$ 2,666,000	[1]
Original Issue Premium/(Discount)
Carrying Value	$ 2,666,000	[1]
Contractual Interest Rate	P + 12.25%(5)	[3],[4]
Maturity Date	4/30/2025	[5]
Payment Terms	P&I	[6]
Initial Funding Date	4/19/2021	[1]
Michigan Two [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Michigan
Outstanding Principal	$ 4,275,000	[1]
Original Issue Premium/(Discount)	(3,567)
Carrying Value	$ 4,271,433	[1]
Contractual Interest Rate	P + 9.00%(5) Cash, 12% PIK	[3],[4]
Maturity Date	2/20/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	8/20/2021	[1]
Various Two [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Various(7)	[2]
Outstanding Principal	$ 25,623,762	[1]
Original Issue Premium/(Discount)	(220,990)
Carrying Value	$ 25,402,772	[1]
Contractual Interest Rate	P + 6.00%(5) Cash, 2.5% PIK	[3],[4]
Maturity Date	6/30/2025	[5]
Payment Terms	P&I	[6]
Initial Funding Date	8/24/2021	[1]
West Virginia [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	West Virginia
Outstanding Principal	$ 10,535,399	[1]
Original Issue Premium/(Discount)	(90,064)
Carrying Value	$ 10,445,335	[1]
Contractual Interest Rate	19.25% PIK	[4]
Maturity Date	9/1/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	9/1/2021	[1]
Pennsylvania [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Pennsylvania
Outstanding Principal	$ 16,013,359	[1]
Original Issue Premium/(Discount)
Carrying Value	$ 16,013,359	[1]
Contractual Interest Rate	P + 10.75%(5) Cash, 6.0% PIK	[3],[4]
Maturity Date	6/30/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	9/3/2021	[1]
Michigan Three [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Michigan
Outstanding Principal	$ 235,205	[1]
Original Issue Premium/(Discount)
Carrying Value	$ 235,205	[1]
Contractual Interest Rate	11.00%	[4]
Maturity Date	9/30/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	9/20/2021	[1]
Maryland [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Maryland
Outstanding Principal	$ 32,809,285	[1]
Original Issue Premium/(Discount)	(536,959)
Carrying Value	$ 32,272,326	[1]
Contractual Interest Rate	P + 8.75%(5) Cash, 2% PIK	[3],[4],[5]
Maturity Date	9/30/2024	[5]
Payment Terms	I/O	[6]
Initial Funding Date	9/30/2021	[1]
Various Three [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Various(7)	[2]
Outstanding Principal	$ 13,038,000	[1]
Original Issue Premium/(Discount)	(107,499)
Carrying Value	$ 12,930,501	[1]
Contractual Interest Rate	P + 9.25%(5) Cash	[3],[4]
Maturity Date	10/31/2024	[5]
Payment Terms	P&I	[6]
Initial Funding Date	11/8/2021	[1]
Michigan Four [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Michigan
Outstanding Principal	$ 13,166,720	[1]
Original Issue Premium/(Discount)	(108,112)
Carrying Value	$ 13,058,608	[1]
Contractual Interest Rate	P + 6.00%(5) Cash, 1.5% PIK	[3],[4]
Maturity Date	11/1/2024	[5]
Payment Terms	I/O	[6]
Initial Funding Date	11/22/2021	[1]
Various Four [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Various(7)	[2]
Outstanding Principal	$ 5,194,514	[1]
Original Issue Premium/(Discount)
Carrying Value	$ 5,194,514	[1]
Contractual Interest Rate	P + 12.25%(5) Cash, 2.5% PIK	[3],[4]
Maturity Date	12/27/2026	[5]
Payment Terms	P&I	[6]
Initial Funding Date	12/27/2021	[1]
Michigan Five [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Michigan
Outstanding Principal	$ 3,835,398	[1]
Original Issue Premium/(Discount)	(33,658)
Carrying Value	$ 3,801,740	[1]
Contractual Interest Rate	P + 7.50%(5) Cash, 5% PIK	[3],[4]
Maturity Date	12/29/2023	[5]
Payment Terms	I/O	[6]
Initial Funding Date	12/29/2021	[1]
Various Five [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Various(7)	[2]
Outstanding Principal	$ 7,050,000	[1]
Original Issue Premium/(Discount)	(43,824)
Carrying Value	$ 7,006,176	[1]
Contractual Interest Rate	P + 9.25%(5)	[3],[4]
Maturity Date	12/31/2024	[5]
Payment Terms	I/O	[6]
Initial Funding Date	12/30/2021	[1]
Florida One [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Florida
Outstanding Principal	$ 15,000,000	[1]
Original Issue Premium/(Discount)	(231,336)
Carrying Value	$ 14,768,664	[1]
Contractual Interest Rate	P + 4.75%(5)	[3],[4]
Maturity Date	1/31/2025	[5]
Payment Terms	P&I	[6]
Initial Funding Date	1/18/2022	[1]
Ohio [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Ohio
Outstanding Principal	$ 12,677,075	[1]
Original Issue Premium/(Discount)	(151,869)
Carrying Value	$ 12,525,206	[1]
Contractual Interest Rate	P + 6.00%(5) Cash, 5% PIK	[3],[4]
Maturity Date	2/28/2025	[5]
Payment Terms	P&I	[6]
Initial Funding Date	2/3/2022	[1]
Florida [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Florida
Outstanding Principal	$ 20,637,961	[1]
Original Issue Premium/(Discount)	(70,061)
Carrying Value	$ 20,567,900	[1]
Contractual Interest Rate	11.00% Cash, 3% PIK	[4]
Maturity Date	8/29/2025	[5]
Payment Terms	P&I	[6]
Initial Funding Date	3/11/2022	[1]
Missouri [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Missouri
Outstanding Principal	$ 17,425,500	[1]
Original Issue Premium/(Discount)	(120,385)
Carrying Value	$ 17,305,115	[1]
Contractual Interest Rate	11.00% Cash, 2% PIK	[4]
Maturity Date	5/30/2025	[5]
Payment Terms	P&I	[6]
Initial Funding Date	5/9/2022	[1]
Illinois [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Illinois
Outstanding Principal	$ 5,114,907	[1]
Original Issue Premium/(Discount)	(73,499)
Carrying Value	$ 5,041,408	[1]
Contractual Interest Rate	P + 8.50%(5) Cash, 3% PIK	[3],[4]
Maturity Date	6/30/2026	[5]
Payment Terms	P&I	[6]
Initial Funding Date	7/1/2022	[1]
Maryland One [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Maryland
Outstanding Principal	$ 11,278,897	[1]
Original Issue Premium/(Discount)	(633,736)
Carrying Value	$ 10,645,161	[1]
Contractual Interest Rate	P + 5.75%(5) Cash, 1.4% PIK	[3],[4]
Maturity Date	1/24/2026	[5]
Payment Terms	P&I	[6]
Initial Funding Date	1/24/2023	[1]
Arizona One [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Arizona
Outstanding Principal	$ 2,000,000	[1]
Original Issue Premium/(Discount)	(49,773)
Carrying Value	$ 1,950,227	[1]
Contractual Interest Rate	P + 7.50%(5)	[3],[4]
Maturity Date	3/31/2026	[5]
Payment Terms	P&I	[6]
Initial Funding Date	3/27/2023	[1]
Oregon [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Location	Oregon
Outstanding Principal	$ 1,000,000	[1]
Carrying Value	$ 1,000,000	[1]
Contractual Interest Rate	P + 10.50%(5)	[3],[4]
Maturity Date	9/27/2026	[5]
Payment Terms	P&I	[6]
Initial Funding Date	3/31/2023	[1]
Current expected credit loss reserve [Member]
Loans Held For Investment, Net (Details) - Schedule of loans held at carrying value based on information [Line Items]
Outstanding Principal		[1]
Original Issue Premium/(Discount)
Carrying Value	$ (4,051,934)	[1]
[1] The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discounts, deferred loan fees and other upfront fees. Outstanding principal balance includes capitalized PIK interest, if applicable. Loans with material collateral in multiple jurisdictions, namely multi-state operators, are disclosed as “various.” This Loan is subject to Prime Rate floor. 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 as 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. P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term. The aggregate loan commitment to Loan #3 includes a $15.9 million initial advance, which has a base interest rate of 13.625%, 2.75% PIK and a second advance 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 both advances for the total aggregate loan commitment.

Loans Held For Investment, Ne_6

Loans Held For Investment, Net (Details) - Schedule of significant unobservable inputs	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value (in Dollars)	$ 307,260,513
Primary Valuation Techniques	Yield analysis
Input	Market yield
Weighted Average	17.53%
Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated Range	11.36%
Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated Range	24.79%

Loans Held For Investment, Ne_7

Loans Held For Investment, Net (Details) - Schedule of risk rating	12 Months Ended
	Dec. 31, 2022
Risk Rating One [Member]
Loans Held For Investment, Net (Details) - Schedule of risk rating [Line Items]
Risk rating	Very low risk
Risk Rating Two [Member]
Loans Held For Investment, Net (Details) - Schedule of risk rating [Line Items]
Risk rating	Low risk
Risk Rating Three [Member]
Loans Held For Investment, Net (Details) - Schedule of risk rating [Line Items]
Risk rating	Moderate/average risk
Risk Rating Four [Member]
Loans Held For Investment, Net (Details) - Schedule of risk rating [Line Items]
Risk rating	High risk/potential for loss: a loan that has a risk of realizing a principal loss
Risk Rating Five [Member]
Loans Held For Investment, Net (Details) - Schedule of risk rating [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

Loans Held For Investment, Ne_8

Loans Held For Investment, Net (Details) - Schedule of carrying value of loans held for investment - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Schedule of Investments [Line Items]
Risk Rating 1				$ 274,406	$ 235,205
Risk Rating 2	$ 13,595,388	$ 94,467,449	$ 124,333,205	88,444,868	71,790,767	$ 29,140,546
Risk Rating 3		30,415,113	12,525,206	83,131,444	65,657,524
Risk Rating 4				13,399,712	28,088,849
Risk Rating 5
Total	13,595,388	124,882,562	$ 136,858,411	$ 185,250,430	$ 165,772,345	$ 29,140,546
Total [Member]
Schedule of Investments [Line Items]
Risk Rating 1	235,205	274,406
Risk Rating 2	209,719,360	212,052,863
Risk Rating 3	78,182,730	113,546,557
Risk Rating 4	28,088,849	13,399,712
Risk Rating 5
Total	$ 316,226,144	$ 339,273,538

Loans Held For Investment, Ne_9

Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage - USD ($)		9 Months Ended	12 Months Ended
		Sep. 30, 2022	Dec. 31, 2022	Mar. 31, 2023
1.0x [Member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]
Floating-rate	[1]	$ 66,411,639	63,963,105
Net real estate collateral coverage	[1]		63,963,105	66,411,639
1.0 - 1.25 [member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]
Floating-rate	[1]	48,285,685	78,211,454
Net real estate collateral coverage	[1]		78,211,454	48,285,685
1.25x - 1.5x [Member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]		20,406,737	20,567,900
Floating-rate	[1]	23,375,836	13,399,712
Net real estate collateral coverage	[1]		33,806,449	43,943,736
1.50x - 1.75x [Member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]		17,203,138	17,305,115
Floating-rate	[1]	37,454,282	9,980,730
Net real estate collateral coverage	[1]		27,183,868	54,759,397
1.75x - 2.0x [Member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]
Floating-rate	[1]	12,075,490	12,849,490
Net real estate collateral coverage	[1]		12,849,490	12,075,490
> 2.0x [Member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]		20,089,663	235,205
Floating-rate	[1]	90,514,992	103,169,509
Net real estate collateral coverage	[1]		123,259,172	90,750,197
Total [Member]
Loans Held For Investment, Net (Details) - Schedule of real estate collateral coverage [Line Items]
Fixed-rate	[1]		57,699,538	38,108,220
Floating-rate	[1]	$ 278,117,924	281,574,000
Net real estate collateral coverage	[1]		$ 339,273,538	$ 316,226,144
[1]Real estate collateral coverage is calculated based upon most recent third-party appraised values

Loans Held For Investment, N_10

Loans Held For Investment, Net (Details) - Schedule of activity related to the CECL Reserve for outstanding balances - USD ($)		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Loans Held For Investment, Net (Details) - Schedule of activity related to the CECL Reserve for outstanding balances [Line Items]
Balance		$ 4,035,354	$ 147,949
Provision for current expected credit losses		96,119	51,343
Balance		4,131,473	199,292
Outstanding [Member]
Loans Held For Investment, Net (Details) - Schedule of activity related to the CECL Reserve for outstanding balances [Line Items]
Balance	[1]	3,940,939	134,542
Provision for current expected credit losses	[1]	110,995	48,296
Balance	[1]	4,051,934	182,838
Unfunded [Member]
Loans Held For Investment, Net (Details) - Schedule of activity related to the CECL Reserve for outstanding balances [Line Items]
Balance	[2]	94,415	13,407
Provision for current expected credit losses	[2]	(14,876)	3,047
Balance	[2]	$ 79,539	$ 16,454
[1] As of March 31, 2023, the CECL Reserve related to outstanding balances on loans at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets. As of March 31, 2023, the CECL Reserve related to unfunded commitments on loans at carrying value is recorded within accounts payable and other accrued liabilities in the Company’s consolidated balance sheets.

Interest Receivable (Details) -

Interest Receivable (Details) - Schedule of summarizes the interest receivable - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Schedule of summarizes the interest receivable [Abstract]
Interest receivable	$ 4,113,589	$ 1,203,330
PIK interest receivable	33,548	1,082
Unused fees receivable	12,611
Total interest receivable	$ 4,159,748	$ 1,204,412

Interest Receivable (Details)_2

Interest Receivable (Details) - Schedule of including non-accrual loans - USD ($)		3 Months Ended	12 Months Ended
		Mar. 31, 2023	Dec. 31, 2022
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable		$ 4,159,748	$ 1,204,412
Principal receivable		923,734
Total		5,083,482	1,204,412
Current Loans [Member]
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable	[1]	3,754,242	1,203,088
Principal receivable	[1]	407,734
Total	[1]	4,161,976	1,203,088
31 - 60 Days Past Due [Member]
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable		405,506	1,324
Principal receivable		516,000
Total		921,506	1,324
61 - 90 Days Past Due [Member]
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable
Principal receivable
Total
90+ Days Past Due (and accruing) [Member]
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable
Principal receivable
Total
Non-Accrual [Member]
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable
Principal receivable
Total
Total Past Due [Member]
Interest Receivable (Details) - Schedule of including non-accrual loans [Line Items]
Interest receivable		405,506	1,324
Principal receivable		516,000
Total		$ 921,506	$ 1,324
[1]Loans 1-30 days past due are included in the current loans.

Interest Reserve (Details) - Sc

Interest Reserve (Details) - Schedule of changes in interest reserves - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2021
Schedule Of Changes In Interest Reserves Abstract
Beginning reserves	$ 1,868,193	$ 6,636,553
New reserves		9,049,834
Reserves disbursed	(1,648,129)	(13,818,194)
Ending reserve	$ 220,064	$ 1,868,193

Debt (Details)

Debt (Details) - USD ($)						3 Months Ended
	Nov. 07, 2022	Jul. 01, 2022	May 12, 2022	Dec. 16, 2021	May 31, 2021	Mar. 31, 2023	Dec. 31, 2022
Debt (Details) [Line Items]
Borrowing amount					$ 10,000,000
Incurred debt issuance costs			$ 177,261		$ 100,000	$ 859,500
Debt to equity, description				On December 16, 2021, CAL entered into an amended and restated Revolving Loan agreement (the “First Amendment and Restatement”). The First Amendment and Restatement increased the loan commitment from $10,000,000 to $45,000,000 and decreased the interest rate, from the greater of the (1) Prime Rate plus 1.00% and (2) 4.75% to the greater of (1) the Prime Rate plus the applicable margin and (2) 3.25%. The applicable margin is derived from a floating rate grid based upon the ratio of debt to equity of CAL and increases from 0% at a ratio of 0.25 to 1 to 1.25% at a ratio of 1.5 to 1. The First Amendment and Restatement also extended the maturity date from February 12, 2023 to the earlier of (i) December 16, 2023 and (ii) the date on which the Revolving Loan is terminated pursuant to the terms of the Revolving Loan agreement.
Incurred debt issuance costs	$ 323,779					2,988
Unamortized debt issuance costs						641,279	$ 805,596
Revolving loan						$ 37,500,000
Incurred effective interest rate						7.75%
Unused fee rate						0.25%
Revolving loan available						$ 55,000,000
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, 2023, the Company is in compliance with all financial covenants with respect to the Revolving Loan.
Minimum [Member]
Debt (Details) [Line Items]
Prime rate plus percentage					1%
Loan commitment	65,000,000		45,000,000
Maximum [Member]
Debt (Details) [Line Items]
Prime rate plus percentage					4.75%
Loan commitment	$ 92,500,000		$ 65,000,000
Revolving Loan [Member]
Debt (Details) [Line Items]
Unused fees rate		0.25%

Debt (Details) - Schedule of su

Debt (Details) - Schedule of summary of interest expense incurred during period - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of summary of interest expense incurred during period [Abstract]
Interest expense	$ 1,440,992
Unused fee expense	10,000
Amortization of deferred financing costs	167,304	72,268
Total interest expense	$ 1,618,296	$ 72,268

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Related Party Transactions [Abstract]
Management fees, percentage	0.375%
Origination fees, percentage	50%
Management fees payable	$ 5,000	$ 717,750
Incentive fee	1,111,206	$ 382,143
Accounts payable	3,400,000		$ 4,700,000
Selling price	13,700,000
Purchase and selling price	$ 19,000,000

Related Party Transactions (D_2

Related Party Transactions (Details) - Schedule of summarizes the related party fees and expenses - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of summarizes the related party fees and expenses [Abstract]
Management fees earned	$ 1,031,799	$ 1,007,112
Less: Outside fees earned	(5,000)	(717,750)
Base management fee, net	1,026,799	289,362
Incentive fees	1,111,206	382,143
Total management and incentive fees earned	2,138,005	671,505
General and administrative expenses reimbursable to Manager	1,176,376	411,521
Total	$ 3,314,381	$ 1,083,026

Commitments and Contingencies_2

Commitments and Contingencies (Details) - Schedule of unfunded commitments on existing loans - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies (Details) - Schedule of unfunded commitments on existing loans [Line Items]
Total original loan commitments	$ 327,954,423	$ 351,367,706
Less: drawn commitments	(313,720,423)	(336,323,706)
Total undrawn commitments	$ 14,234,000	$ 15,044,000

Commitments and Contingencies_3

Commitments and Contingencies (Details) - Schedule of material commitments	Mar. 31, 2023 USD ($)
Commitments and Contingencies (Details) - Schedule of material commitments [Line Items]
Total	$ 51,734,000
2023	2,400,000
2024	44,500,000
2025	834,000
2026	4,000,000
2027
Thereafter
Undrawn commitments [Member]
Commitments and Contingencies (Details) - Schedule of material commitments [Line Items]
Total	14,234,000
2023	2,400,000
2024	7,000,000
2025	834,000
2026	4,000,000
2027
Thereafter
Revolving loan [Member]
Commitments and Contingencies (Details) - Schedule of material commitments [Line Items]
Total	37,500,000
2023
2024	37,500,000
2025
2026
2027
Thereafter

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)		1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 05, 2022	Feb. 15, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
Underwriters shares purchase (in Shares)	302,800
Common stock price par value (in Dollars per share)	$ 16	$ 15.16
Additional gross proceeds	$ 4,844,800	$ 6,000,000
Additional net proceeds	4,505,664
Underwriting commissions	$ 339,136
Direct offering share (in Shares)		395,779
Restricted common stock shares (in Shares)						98,440
Granted to members (in Shares)					24,880
Issued and outstanding shares percentage			8.50%		8.50%
Shares forfeited (in Shares)			417	3,750
Share-based compensation expense			$ 138,335	$ 120,940
Expenses			$ 1,100,000	$ 1,600,000
Weighted-average term			2 years 1 month 6 days	2 years 1 month 6 days

Stockholders' Equity (Details)

Stockholders' Equity (Details) - Schedule of restricted stock awards	3 Months Ended
	Mar. 31, 2023 USD ($)
Schedule of restricted stock awards [Abstract]
Aggregate intrinsic value, Outstanding	$ 994,539
Aggregate intrinsic value, Vested	$ 472,728

Stockholders' Equity (Details_2

Stockholders' Equity (Details) - Schedule of restricted stock activity - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule Of Restricted Stock Activity Abstract
Restricted stock activity, Beginning	80,984	98,440
Grant Date Fair Value per Share, Beginning	$ 15.71	$ 16
Restricted stock activity, Vested	(6,952)
Grant Date Fair Value per Share, Vested	$ 16
Restricted stock activity, Forfeited	(417)	(3,750)
Grant Date Fair Value per Share, Forfeited	$ 16	$ 16
Restricted stock activity, Ending	73,615	94,690
Grant Date Fair Value per Share, Ending	$ 15.68	$ 16

Earnings Per Share (Details) -

Earnings Per Share (Details) - Schedule of basic earnings per common share - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to common stockholders	$ 10,692,349	$ 7,803,952
Divided by:
Basic weighted average shares of common stock outstanding	17,879,444	17,641,090
Diluted weighted average shares of common stock outstanding	17,960,103	17,737,975
Basic earnings per common share	$ 0.6	$ 0.44
Diluted earnings per common share	$ 0.6	$ 0.44

Income Tax (Details)

Income Tax (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Stockholders at least percentage	90%
REIT taxable income percentage	100%
Ordinary income percentage	85%
Capital gain net income percentage	95%
Non-deductible excise tax equal percentage	4%
Net capital gains percentage	90%
Nondeductible percentage	4%
Income tax provision (in Dollars)	$ 0	$ 0

Dividends and Distributions (De

Dividends and Distributions (Details) - Schedule of dividends declared - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Regular cash dividend [Member]
Dividends and Distributions (Details) - Schedule of dividends declared [Line Items]
Record Date	Mar. 31, 2023	Mar. 31, 2022
Payment Date	Apr. 14, 2023	Apr. 14, 2022
Common Share Distribution Amount	$ 0.47	$ 0.4
Taxable Ordinary Income	$ 0.47	0.4
Return of Capital (in Dollars)
Section 199A Dividends	$ 0.47	0.4
Total cash dividend [Member]
Dividends and Distributions (Details) - Schedule of dividends declared [Line Items]
Common Share Distribution Amount	0.47	0.4
Taxable Ordinary Income	$ 0.47	$ 0.4
Return of Capital (in Dollars)
Section 199A Dividends	$ 0.47	$ 0.4

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Mar. 15, 2023	Mar. 31, 2023	May 09, 2023
Subsequent Events (Details) [Line Items]
Cash dividend per share (in Dollars per share)	$ 0.47
Cash dividend payment		$ 8.5
Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Loan principal			$ 0.6