Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Mar. 28, 2025	Jun. 30, 2024
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Entity File Number	001-37997
Entity Registrant Name	SACHEM CAPITAL CORP.
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	81-3467779
Entity Address, Address Line One	568 East Main Street
Entity Address, City or Town	Branford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06405
City Area Code	203
Local Phone Number	433-4736
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float				$ 117.7
Entity Common Stock, Shares Outstanding			47,310,139
Auditor Name	Baker Tilly US, LLP	Hoberman & Lesser CPA’s, LLP
Auditor Firm ID	23	694
Auditor Location	Philadelphia, Pennsylvania	New York
Entity Central Index Key	0001682220
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Shares
Document and Entity Information
Title of 12(b) Security	Common Shares, par value $.001 per share
Trading Symbol	SACH
Security Exchange Name	NYSE
7.75% notes due 2025
Document and Entity Information
Title of 12(b) Security	7.75% notes due 2025
Trading Symbol	SCCC
Security Exchange Name	NYSE
6.00% notes due 2026
Document and Entity Information
Title of 12(b) Security	6.00% notes due 2026
Trading Symbol	SCCD
Security Exchange Name	NYSE
6.00% notes due 2027
Document and Entity Information
Title of 12(b) Security	6.00% notes due 2027
Trading Symbol	SCCE
Security Exchange Name	NYSE
7.125% notes due 2027
Document and Entity Information
Title of 12(b) Security	7.125% notes due 2027
Trading Symbol	SCCF
Security Exchange Name	NYSE
8.00% notes due 2027
Document and Entity Information
Title of 12(b) Security	8.00% notes due 2027
Trading Symbol	SCCG
Security Exchange Name	NYSE
Series A Preferred Stock
Document and Entity Information
Title of 12(b) Security	7.75% Series A Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share
Trading Symbol	SACHPRA
Security Exchange Name	NYSE

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Assets
Cash and cash equivalents	$ 18,066	$ 12,598
Investment securities (at fair value)	1,517	37,776
Loans held for investment (net of deferred loan fees of $1,950 and $4,647)	375,041	494,588
Allowance for credit losses	(18,470)	(7,523)
Loans held for investments, net of allowances for credit losses	356,571	487,065
Loans held for sale (net of valuation allowance of $4,880 and $0)	10,970	0
Interest and fees receivable, net	3,768	8,475
Due from borrowers, net	5,150	5,597
Real estate owned, net	18,574	3,462
Investments in limited liability companies	53,942	43,036
Investments in rental real estate, net	14,032	10,554
Property and equipment, net	3,222	3,373
Other assets	6,164	8,956
Total assets	491,976	620,892
Liabilities:
Notes payable (net of deferred financing costs of $3,713 and $6,048)	226,526	282,353
Repurchase agreements	33,708	26,461
Mortgage payable	1,002	1,081
Lines of credit	40,000	61,792
Accrued dividends payable		5,144
Accounts payable and accrued liabilities	4,377	2,322
Advances from borrowers	4,047	10,998
Below market lease intangible	665	665
Total liabilities	310,325	390,816
Commitments and Contingencies - Note 12
Shareholders' equity:
Preferred shares - $.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 and 2,029,923 shares of Series A Preferred Stock issued and outstanding at December 31, 2024 and December 31, 2023, respectively	2	2
Common stock - $.001 par value; 200,000,000 shares authorized; 46,965,306 and 46,765,483 issued and outstanding at December 31, 2024 and December 31, 2023, respectively	47	47
Additional paid-in capital	256,956	249,826
Accumulated other comprehensive income		316
Cumulative net earnings	35,518	75,089
Cumulative dividends paid	(110,872)	(95,204)
Total shareholders' equity	181,651	230,076
Total liabilities and shareholders' equity	$ 491,976	$ 620,892

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Net of deferred loan fees	$ 1,950	$ 4,647
Valuation allowance, loans held for sale	4,880	0
Deferred financing costs	$ 3,713	$ 6,048
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares, shares authorized	200,000,000	200,000,000
Common shares, shares issued	46,965,306	46,765,483
Common shares, shares outstanding	46,965,306	46,765,483
Series A Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001
Preferred stock, shares authorized	2,903,000	2,903,000
Preferred stock, shares issued	2,306,748	2,029,923
Preferred stock, shares outstanding	2,306,748	2,029,923

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Revenues
Interest income from loans	$ 43,154	$ 49,265
Fee income from loans	8,594	10,699
Income from limited liability company investments	5,239	3,522
Other investment income	391	1,209
Other income	122	54
Total revenues	57,500	64,749
Operating expenses
Interest and amortization of deferred financing costs	27,798	29,190
Compensation and employee benefits	6,824	6,932
General and administrative expenses	6,841	4,955
Provision for credit losses related to available-for-sale debt securities		809
Provision for credit losses related to loans held for investment	26,928	5,588
Change in valuation allowance related to loans held for sale	4,880	0
Impairment loss on real estate owned	492	794
(Gain) loss on sale of real estate owned and property and equipment, net	(439)	88
Other expenses	1,952	1,354
Total operating expenses	75,276	49,710
Operating (loss) income before other (loss) income	(17,776)	15,039
Other (loss) income
Gain on equity securities	178	860
Loss on sale of loans	(21,973)
Total other (loss) income, net	(21,795)	860
Net (loss) income	(39,571)	15,899
Preferred stock dividend	(4,304)	(3,795)
Net (loss) income attributable to common shareholders	$ (43,875)	$ 12,104
Basic and diluted net income (loss) per common share outstanding:
Basic (loss) earnings per Common Share	$ (0.93)	$ 0.27
Diluted (loss) earnings per Common Share	$ (0.93)	$ 0.27
Weighted average number of common shares outstanding:
Basic weighted average Common Shares outstanding	47,413,012	44,244,988
Diluted weighted average Common Shares outstanding	47,413,012	44,244,988

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Net (loss) income	$ (39,571)	$ 15,899
Other comprehensive (loss) income:
Unrealized holding gains on available for sale ("AFS") securities		69
Less: Reclassification adjustment for gains / losses realized in net (loss) income	(316)
Less: Reclassification of losses from unrealized to provision for credit losses		809
Other comprehensive (loss) income	(316)	878
Comprehensive (loss) income, net	(39,887)	16,777
Preferred stock dividend	(4,304)	(3,795)
Total comprehensive (loss) income attributable to common shareholders	$ (44,191)	$ 12,982

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Shares	Common Shares	Additional Paid in Capital	Accumulated Other Comprehensive Income (Loss)	Cumulative Net Earnings	Cumulative Dividends Paid	Total
Beginning balance at Dec. 31, 2022	$ 2	$ 41	$ 226,221	$ (562)	$ 61,680	$ (69,675)	$ 217,707
Beginning balance (in shares) at Dec. 31, 2022	1,903,000	41,093,536
Cumulative effect of adoption of new accounting principle (ASU 2016-13)					(2,490)		(2,490)
Issuance of Series A Preferred Stock, net of expenses			2,564				2,564
Issuance of Series A Preferred Stock, net of expenses (in shares)	126,923
Issuance of Common Shares, net of expenses		$ 5	20,445				20,450
Issuance of common shares, net of expenses (in shares)		5,546,891
Stock buyback			(226)				$ (226)
Stock buyback (in shares)		(71,000)					(71,000)
Stock-based compensation, less shares forfeited		$ 1	822				$ 823
Stock-based compensation, less shares forfeited (in shares)		196,056
Reclassification of losses from unrealized to provision for credit losses				809			809
Unrealized holding gains on available for sale ("AFS") securities				69			69
Dividends paid on Series A Preferred Stock						(3,795)	(3,795)
Dividends paid on Common Shares						(16,590)	(16,590)
Dividends declared on Common Shares						(5,144)	(5,144)
Net (loss) income					15,899		15,899
Ending balance at Dec. 31, 2023	$ 2	$ 47	249,826	316	75,089	(95,204)	230,076
Ending balance (in shares) at Dec. 31, 2023	2,029,923	46,765,483
Issuance of Series A Preferred Stock, net of expenses			5,706				5,706
Issuance of Series A Preferred Stock, net of expenses (in shares)	276,825
Issuance of Common Shares, net of expenses		$ 1	2,049				2,050
Issuance of common shares, net of expenses (in shares)		568,711
Stock buyback		$ (1)	(1,488)				$ (1,489)
Stock buyback (in shares)		(581,745)					(581,745)
Stock-based compensation, less shares forfeited			863				$ 863
Stock-based compensation, less shares forfeited (in shares)		212,857
Reclassification adjustment for gains / losses realized in net (loss) income				$ (316)			(316)
Dividends paid on Series A Preferred Stock						(4,304)	(4,304)
Dividends paid on Common Shares						(11,364)	(11,364)
Net (loss) income					(39,571)		(39,571)
Ending balance at Dec. 31, 2024	$ 2	$ 47	$ 256,956		$ 35,518	$ (110,872)	$ 181,651
Ending balance (in shares) at Dec. 31, 2024	2,306,748	46,965,306

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (39,571)	$ 15,899
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Amortization of deferred financing costs	2,456	2,415
Depreciation expense	372	266
Write-off of other assets - pre-offering costs		477
Stock-based compensation	863	823
Provision for credit losses related to available-for-sale debt securities		809
Provision for credit losses related to loans held for investment	26,928	5,588
Change in valuation allowance related to loans held for sale	4,880	0
Loss on sale of Loans	21,973
Impairment loss on real estate owned	492	794
(Gain) loss on sale of real estate owned and property and equipment, net	(439)	88
(Gain) on equity securities	(178)	(860)
Deferred loan fees revenue	(2,697)	287
Changes in operating assets and liabilities:
Interest and fees receivable, net	2,476	(2,285)
Other assets	2,676	(3,596)
Due from borrowers, net	(1,431)	(334)
Accounts payable and accrued liabilities	1,041	374
Advances from borrowers	(6,951)	1,106
Total adjustments and operating changes	52,461	5,952
NET CASH PROVIDED BY OPERATING ACTIVITIES	12,890	21,851
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities	(7,767)	(30,415)
Proceeds from the sale of investment securities	43,888	18,120
Purchase of interests in limited liability companies	(18,271)	(13,896)
Proceeds from limited liability companies returns of capital	7,366	1,661
Proceeds from sale of real estate owned	1,624	450
Acquisitions of and improvements to real estate owned	(510)	(229)
Proceeds from sale of property and equipment	9	1,299
Purchase of property and equipment	(77)	(784)
Improvements in investment in rental real estate	(3,025)	(10,845)
Principal disbursements for loans	(134,298)	(204,885)
Principal collections on loans	190,971	167,036
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	79,910	(72,488)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit	27,959	58,204
Repayments on lines of credit	(49,751)
Proceeds from repurchase agreements	19,055	14,028
Repayments of repurchase agreements	(11,808)	(30,100)
(Repayment of) proceeds from mortgage payable	(79)	331
Dividends paid on Common Shares	(16,508)	(21,933)
Dividends paid on Series A Preferred Stock	(4,304)	(3,795)
Proceeds from issuance of common shares, net of expenses	2,050	20,450
Repurchase of Common Shares	(1,489)	(226)
Proceeds from issuance of Series A Preferred Stock, net of expenses	5,706	2,563
Repayment of notes payable	(58,163)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(87,332)	39,522
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	5,468	(11,115)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	12,598	23,713
CASH AND CASH EQUIVALENTS - END OF PERIOD	18,066	12,598
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the period for interest	25,300	26,616
Real estate acquired in connection with foreclosure of certain mortgages	28,639	1,750
Loans held for investment from sale of real estate owned	989	$ 2,577
Loans transferred from held to investment to held for sale	$ 15,850

The Company

12 Months Ended

Dec. 31, 2024

The Company

The Company

1. The Company

Sachem Capital Corp. (the “Company”), a New York corporation, specializes in originating, underwriting, funding, servicing and managing a portfolio of first mortgage loans. The Company operates its business as one segment. The Company offers short-term (i.e., one to three years), secured, non-bank loans (sometimes referred to as “hard money” loans) to real estate owners and investors to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in the northeastern and southeastern sections of the United States. The properties securing the Company’s loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and may also be secured with additional collateral, such as other real estate owned by the borrower or its principals, a pledge of the ownership interests in the borrower by the principals thereof, and/or personal guarantees by the principals of the borrower. The Company does not lend to owner occupants of residential real estate. The Company’s primary underwriting criteria is a conservative loan to value ratio. In addition, the Company may make opportunistic real estate purchases apart from its lending activities.

Segment Reporting

The Company uses the management approach to determine reportable operating segments. The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation through its investments in real estate mortgage loans and real estate. The management approach considers the internal organization and reporting used by the Company’s Chief Executive Officer, whom serves as the chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net income. In addition to other factors and metrics, the CODM utilizes net income as a key determinant of the amount of dividends to be distributed to the Company's stockholders.

As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the accompanying consolidated balance sheet as “total assets” and the significant segment expenses are listed on the accompanying consolidated statement of operations.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2024

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of the Company include the accounts of all subsidiaries in which the Company has control over significant operating, financial and investing decisions of the entity. As of December 31, 2024, the accounts and activities of these subsidiaries were not material to warrant separate disclosure or segment reporting. As a result, the Company has only one reportable segment for financial reporting purposes. All intercompany accounts and transactions have been eliminated in consolidation.

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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) various assumptions that consider prior reporting results, (b) the Company’s projections regarding future operations and (c) general financial market and local and general economic conditions. Actual amounts could differ from those estimates. Significant estimates include the provisions for current expected credit losses, loans held for sale at fair value, and real estate owned.

Concentration of Credit Risks

Financial instruments that may subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, loans and related receivables. Concentration of credit risk relating to loans and related receivables are managed by the Company through robust portfolio monitoring and performing due diligence prior to origination or acquisition, when and where available and appropriate.

Cash and Cash Equivalents

The Company considers all demand deposits, cashier’s checks, money market accounts and certificates of deposit with an original maturity of three months or less to be cash equivalents.

Investment Securities (at fair value)

Debt investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive (loss) income. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, management evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, management employs a systematic methodology that considers available quantitative and qualitative evidence. In addition, management may consider specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company plans to sell the security or it is more likely than not that it will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in net income and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future losses and/or impairments.

Marketable equity investments with readily determinable fair values are measured at fair value and are classified as trading securities with changes in value recorded in net income.

Investment in Limited Liability Companies (“LLCs”)

The Company accounts for its investments in limited liability companies based on the level of ownership, control, and influence in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 323 (Investments – Equity Method and Joint Ventures) and FASB ASC 810 (Consolidation). Investments in LLCs are classified into the following categories based on the Company’s level of influence and control:

1.Fair Value Method (FASB ASC 321) – Passive Investments (Less than 20% Ownership, No Significant Influence)

o

Investments in LLCs where the Company does not exercise significant influence are accounted for under FASB ASC 321 (Investments – Equity Securities) and recorded at fair value, with changes in fair value recognized in earnings.

o

If fair value is not readily determinable, the Company applies the measurement alternative, recording the investment at cost less impairment, adjusted for observable price changes.

2.Equity Method (FASB ASC 323) – Significant Influence (20% – 50% Ownership)

o

The Company applies the equity method of accounting for investments where it has significant influence over the operating and financial policies of the LLC.

o

Under the equity method, the Company recognizes its proportionate share of the LLC’s net income or loss in earnings and adjusts the carrying amount of the investment accordingly.

o

Distributions received from equity method investments are recorded as a reduction of the investment unless they represent a return on investment, in which case they are recognized as income.

o

The investment is assessed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable.

3.Consolidation (FASB ASC 810) – Variable Interest Entities (“VIEs”) or Controlling Interest

o

Voting Interest Model: The Company holds greater than 50% of the voting interests and has the power to direct the significant activities of the LLC.

o

Variable Interest Entity (VIE) Model: If the LLC qualifies as a Variable Interest Entity, the Company consolidates the LLC when it is deemed to be the primary beneficiary of the VIE. In accordance with FASB ASC 810, the Company evaluates whether:

1.

The LLC is a VIE (i.e., lacks sufficient equity to finance its operations without additional support or the equity holders do not have the power to direct significant activities); and

2.

The Company has both: The power to direct the activities of the VIE that most significantly affect its economic performance, and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant.

When both conditions are met, the Company consolidates the VIE in its financial statements, including the entity’s assets, liabilities, and operations. Noncontrolling interests in consolidated LLCs, if any, are presented separately within the financial statements. The Company reassesses its conclusions about VIE status and primary beneficiary determination on an ongoing basis, particularly when events occur that may change the underlying structure or governance of the investee.

For investments accounted for under the equity method or the measurement alternative cost method, the Company evaluates whether indicators of impairment exist. If an investment is determined to be other-than-temporarily impaired, the carrying value is written down to its estimated fair value, with the impairment loss recognized in earnings.

Loans held for investment

Loans that are originated and serviced by the Company, that management has the intent and ability to hold for the foreseeable future are reporting at their outstanding balances, net of an allowance for credit losses and unamortized deferred fees. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to fee income over the contractual lives of the loans using the interest method which reflects a constant yield. Interest income on loans is accrued based on the unpaid principal balance outstanding and the contractual terms of the loan agreements.

Loans held for sale

Loans are classified as held for sale if there is an intent to sell in the near-term. These loans are recorded at the lower of amortized cost or fair value. If the fair value of a loan is determined to be less than its amortized cost, a non-recurring fair value adjustment will be recorded through a valuation allowance. When a loan is transferred into the held for sale category, any previously recorded allowance for credit losses is reversed in the provision for credit losses related to loans and the loan is recorded at its amortized cost basis. If the amortized cost basis exceeds the loan’s fair value at the date of transfer, a valuation allowance equal to the difference between amortized cost basis and fair value is recorded.

Non-accrual loans

A loan is generally placed on non-accrual status when it is probable that principal and interest will not be collected under the original contractual terms. At that time, interest income is no longer accrued. Non-accrual loans consist of loans for which principal or interest has been delinquent for 90 days or more. Interest income is subsequently recognized only to the extent it is received in cash or until the loan qualifies for return to accrual status. Loans are restored to accrual status when contractually current and the collection of future payments is reasonably assured. In certain instances, the Company may make exceptions to placing a loan on non-accrual status if the loan is in the process of modification.

Loan modifications made to borrowers experiencing financial difficulty.

In situations where economic or legal circumstances may cause a borrower to experience significant financial difficulties, the Company may grant concessions for a period of time to the borrower that it would not otherwise consider. These modified terms may include interest rate reductions, principal forgiveness, term extensions, and other-than-insignificant payment delay intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company monitors the performance of all loans, including loans modified to borrowers experiencing financial difficulty and considers loans that are 90 days past due to be in payment default.

Transfer of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. Transfers of agreements that meet the sale criteria under FASB ASC 860 (Transfers and Servicing) are derecognized from the Consolidated Balance Sheets at the time of transfer. If the transfer of loans does not meet the sale criteria or participating interest criteria under FASB ASC 860, the transfer is accounted for as a secured borrowing and the loan is not de-recognized and a participating liability is recorded in the Consolidated Balance Sheets.

Allowance for Credit Losses

The Company adopted the current expected credit loss (“CECL”) standard effective January 1, 2023 in accordance with Accounting Standard Update (“ASU”) No. 2016-13. The initial CECL allowance adjustment of $2.5 million was recorded effective January 1, 2023 as a cumulative-effect of change in accounting principle through a direct charge to cumulative net earnings on the consolidated statements of shareholders’ equity. Subsequent changes to the CECL allowance will be recognized in the consolidated statements of operations in “Provision for credit losses related to loans held for investment”.

The Company records an Allowance for credit losses on the consolidated balance sheets with respect to its loan portfolio, including unfunded construction commitments, on a collective basis by assets with similar risk characteristics. This methodology, known as the “estimated expected lifetime losses,” replaces the “probable incurred loss impairment” methodology. In addition, interest and fees receivable and amounts included in due from borrowers, other than reimbursements, which include origination, modification and other fees receivable are also analyzed for credit losses in accordance with CECL standard, as they represent a financial asset that is subject to credit risk. As allowed under the CECL standard used by the Company, as a practical expedient, the fair value of the collateral at the reporting date is compared to the net carrying amount of the loan when determining the allowance for credit losses for loans in pending/pre-foreclosure status, as defined. Fair value of collateral is reduced by estimated cost to sell if the collateral is expected to be sold. The aggregate gross outstanding principal of loans in pending/pre-foreclosure as of December 31, 2024, and December 31, 2023, was $52.1 million and $63.7 million, respectively. As of December 31, 2024, and December 31, 2023, the Company had directly reserved against these loans in foreclosure in the amounts of $6.1 million and $5.1 million, respectively. Further, the Company had direct reserves against non-performing loans held for investment that experienced declines in fair value of $7.3 million and $0, respectively. As of December 31, 2024, the aggregate outstanding principal amount of non-performing loans held for investment with direct allowances was $57.8 million. Such allowances are presented net in “Loans held for investment, net” and “Loans held for sale, net” on the consolidated balance sheets included in the accompanying consolidated financial statements based on their respective classification.

The CECL standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a vintage loss-rate method for estimating current expected credit losses. The vintage loss rate method involves applying a vintage loss rate to a pool of loans with similar risk characteristics to estimate the expected credit losses on that pool of loans. In determining the CECL allowance, the Company considers various factors including (1) historical loss experience and unrealized forecasted losses in its portfolio, (2) loan specific losses for loans deemed collateral dependent based on excess amortized cost over the fair value of the underlying collateral, and (3) its current and future view of the macroeconomic environment.

The Company’s estimate of expected credit losses includes a review of charge-off experience factors, contractual delinquency, historical collection rates, the value of underlying collateral and other information to make the necessary judgments as to allowance for credit losses expected in the portfolio as of the reporting date. While management utilizes the best information available to make its evaluations, changes in macroeconomic conditions, interest rate environments, or both, may significantly impact the assumptions and inputs used in determining the allowance for credit losses. The Company’s charge-off policy is determined by a review of each delinquent loan. The Company has an accounting policy to not place loans on nonaccrual status unless they are more than 90 days delinquent. Accrual of interest income is generally resumed when the delinquent contractual principal and interest is paid in full or when a portion of the delinquent payments are made, and the ongoing required contractual payments have been made for an appropriate period.

In the year ended December 31, 2024, the Company updated its methodology for estimating the CECL factors on its portfolio of financial assets related to loans. This update reflects the Company incorporating its current unrealized losses on individually evaluated loans into its historical loss data, as this change is believed to provide sufficient coverage to forecast estimated expected lifetime losses.

Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. The Allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loans based on evaluating historical credit loss experience and to make adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. The “Allowance for credit losses” related to the principal outstanding is presented within “Loans held for investment, net” and for unfunded commitments is within accounts payable and accrued liabilities in the Company’s consolidated balance sheets. The “Allowance for credit losses” related to the late payment fees are presented in “Interest and fees receivable, net”, and “Due from borrowers, net” in the Company’s consolidated balance sheets. Lastly, the allowance related to unfunded commitments for construction loans is presented in “Accounts payable and accrued liabilities” on the Company’s consolidated balance sheets.

See Note 4 – Loans and Allowance for Credit Losses for further details.

Fair Value Measurements

The framework for measuring fair value provides a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

Level 1Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company can access.

Level 2Inputs to the valuation methodology include:

●

quoted prices for similar assets or liabilities in active markets;

●

quoted prices for identical or similar assets or liabilities in inactive markets;

●

inputs other than quoted prices that are observable for the asset or liability; and

●

inputs that are derived principally from or corroborated by observable market data by correlation to other means.

If the asset or liability has a specified (i.e., contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Property and Equipment

Land and building acquired in 2021 to serve as the Company’s corporate headquarters is stated at cost. Renovation of the building was completed in the first quarter of 2023 and the Company relocated its operations to the building in March 2023. The land is carried at cost. The building is stated at cost less accumulated depreciation. The building is being depreciated using the straight – line method over its estimated useful life of 40 years. The building was placed in service during the three months ended March 31, 2023. Further, furniture and fixtures, computer hardware and software, and vehicles are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Furniture and fixtures are depreciated using an estimated useful life of three to five years. Computer hardware and software are depreciated using an estimated useful life of two to three years. Vehicles are depreciated using an estimated useful life of five years.

The following tables represent the Company’s property and equipment, net:


Year ended December 31, 2024	Cost		Accumulated Depreciation		Property and Equipment, Net

	(in thousands)
Building	$	2,557	$	(110)	$	2,447
Land		255		—		255
Furniture and fixtures		308		(117)		191
Computer hardware and software		295		(246)		49
Vehicles		435		(155)		280
Total property and equipment, net	$	3,850	$	(628)	$	3,222


Year ended December 31, 2023	Cost		Accumulated Depreciation		Property and Equipment, Net

	(in thousands)
Building	$	2,541	$	(47)	$	2,494
Land		255		—		255
Furniture and fixtures		281		(51)		230
Computer hardware and software		276		(213)		63
Vehicles		429		(98)		331
Total property and equipment, net	$	3,782	$	(409)	$	3,373

Investment in Rental Real Estate

Real estate is carried at cost, net of accumulated depreciation and amortization. Betterments, major renewals and certain costs directly related to the improvement and leasing of real estate are capitalized. Maintenance and repairs are expensed as incurred. For redevelopment of existing operating properties, the net book value of the existing property under redevelopment plus the cost for the construction and improvements incurred in connection with the redevelopment, including interest and debt expense, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the redeveloped property when complete. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of the redeveloped property, the excess is charged to expense. Depreciation is recognized on a straight-line basis over the estimated useful lives of these assets which range from 7 to 40 years. Tenant allowances are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets.

Upon the acquisition of real estate, the Company assesses whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Acquisitions of real estate generally will not meet the definition of a business because substantially all the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets).

The Company allocates the purchase price of real estate to land and building (inclusive of site and tenant improvements) and, if determined to be material, intangible assets, such as the value of above- and below-market leases and deferred leasing costs associated with the in-place leases.

The allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed involves subjectivity as the allocations are based on an analysis of the respective fair values. In determining the fair value of the real estate acquired, the Company utilized a third-party valuation which primarily utilizes cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as a sales comparison approach, which utilizes comparable sales, listings and sales contracts. The Company assesses the fair value of the leases acquired based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. The determined and allocated fair values to the real estate acquired will affect the amount of depreciation and amortization we record over the respective estimated useful lives or term of the lease.

On June 23, 2023, the Company entered into a purchase and sale contract (the “Westport Purchase Agreement”) to acquire a commercial office building in Westport, CT (the “Westport Asset”) for $10.6 million. The transaction was completed on August 31, 2023. In connection with this transaction, which was accounted for as an asset acquisition, the Company allocated the purchase price and acquisition-related costs to the tangible and intangible assets acquired based on fair value. In addition, the Company recorded a lease liability stemming from below-market rental rates. Total consideration, including capitalized acquisition-related costs, was $10.7 million.

See Note 5 – Investment in Rental Real Estate, net for further details surrounding the above acquisition as of December 31, 2024.

Real Estate Owned (“REO”)

REO acquired through foreclosure is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. After an REO acquisition, events or circumstances may occur that result in a material and sustained decrease in the cash flows generated from the property or other market indicators including listing data may signal a decline in the liquidation value. REO is evaluated for recoverability when impairment indicators are identified. Any impairment losses or recoveries are included in the consolidated statements of operations.

Impairment of Long-Lived Assets

The Company continually monitors events or changes in circumstances that could indicate the carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the undiscounted cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.

Goodwill

Goodwill is tested for impairment annually as of the balance sheet date or more frequently if events or changes in circumstances indicate potential impairment. Goodwill at December 31, 2024 represents the excess of the consideration paid over the fair value of net assets acquired from Urbane New Haven, LLC in October 2022.

In testing goodwill for impairment, the Company adheres to FASB ASC 350 (Intangibles—Goodwill and Other), which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, or the Company chooses not to perform the qualitative assessment, then it compares the fair value of that reporting unit with its carrying value, including goodwill.

As of December 31, 2024 and December 31, 2023, goodwill was $0.4 million, respectively, which is presented in Other assets on the Company’s consolidated balance sheets. As of and during the years ended December 31, 2024, and 2023, there was no impairment to goodwill.

Deferred Financing Costs

Costs incurred in connection with the Company’s revolving credit facilities, described in Note 8 – Lines of Credit, Mortgage Payable Churchill Facility – are amortized over the term of the applicable facility using the straight-line method, which approximates the effective interest.

Costs incurred by the Company in connection with the issuance of unsecured, unsubordinated notes, described in Note 9 – Unsecured Notes Payable – are being amortized over the term of the respective unsecured, unsubordinated notes using the effective interest method.

Revenue Recognition

Interest income from the Company’s loan portfolio is earned over the loan period and is calculated using the simple interest method on principal amounts outstanding. Generally, the Company’s loans provide for interest to be paid monthly in arrears. The Company, generally, does not accrue interest income on loans that are more than 90 days past due or interest charged at default rates.

Origination, modification, extension, and construction servicing fee revenue, generally 1% – 3% of either the original loan principal or the modified loan balance, is collected at loan funding and is recognized ratably over the contractual life of the loan in accordance with FASB ASC 310 (Receivables).

Interest Reserves

The Company utilizes interest reserves on certain loans which are applied to future interest payments. Such reserves are established at the time of loan origination. The interest reserve is recorded as a liability as it represents unearned interest revenue. The interest reserve is relieved when the interest on the loan is earned, and interest income is recorded in the period when the interest is earned in accordance with the credit agreement. The interest payment is deducted from the interest reserve deposit balance on the date when the interest payment is due. The decision to establish an interest reserve is made during the underwriting process and considers the creditworthiness and expertise of the borrower, the feasibility of the project, and the debt coverage provided by the real estate and other pledged collateral. It is the Company’s policy to recognize income for this interest component as long as the borrower is progressing as originally projected and if there has been no deterioration in the financial condition of the borrower or the underlying project. The Company’s standard accounting policies for interest income recognition are applied to all loans, including those with interest reserves.

Expenses

Interest expense, in accordance with the Company’s financing agreements, is recorded on an accrual basis. General and administrative expenses, including professional fees, are expensed as incurred.

Income Taxes

The Company believes it qualifies as a real estate investment trust (“REIT”) for federal income tax purposes and operates accordingly. It made the election to be taxed as a REIT on its 2017 Federal income tax return. The Company’s qualification as a REIT depends on its ability to meet on a continuing basis, through actual investment and operating results, various complex requirements under the Internal Revenue Code of 1986, as amended (the “Code”), relating to, among other things, the sources of its income, the composition and values of its assets, its compliance with the distribution requirements applicable to REITs and the diversity of ownership of its outstanding capital stock. So long as it qualifies as a REIT, the Company, generally, will not be subject to U.S. federal income tax on its taxable income distributed to its shareholders. However, if it fails to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal income tax at regular corporate rates and may also be subject to various penalties and may be precluded from re-electing REIT status for the four taxable years following the year during in which it lost its REIT qualification. Other than taxes incurred by the Company’s taxable REIT subsidiary (“TRS”), the Company does not expect to incur any corporate federal income tax liability outside of the TRS, as it believes it has maintained its qualification as a REIT.

The Company has elected, and may elect in the future, to treat certain of its existing or newly created corporate subsidiaries as TRSs. In general, a TRS may hold assets that the Company cannot hold directly and generally may engage in any real estate or non-real estate related business. The TRSs generate income, resulting in federal and state income tax liability for these entities. During the year ended December 31, 2024, the Company’s TRSs recognized provisions for federal and state income tax of $0.2 million, which is represented in Other expenses on the Company’s consolidated statements of operations. During the year ended December 31, 2023, there were no recognized provisions for federal income tax nor state tax.

The income tax provision for the Company differs from the amount computed from applying the statutory federal income tax rate to income before income taxes due to non-taxable REIT income and other permanent differences including the non-deductibility of acquisition costs of business combinations for federal income tax reporting.

FASB ASC Sub-Topic 740-10 “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and disclosure required. Under this standard, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. The Company has determined that there are no uncertain tax positions requiring accrual or disclosure in the accompanying consolidated financial statements as of December 31, 2024 and 2023.

(Losses) Earnings Per Share

Basic and diluted (losses) earnings per share are calculated in accordance with FASB ASC 260 (Earnings Per Share). Under FASB ASC 260, basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares, $.001 par value per share, (“Common Shares”) outstanding for the period. The computation of diluted (losses) earnings per share is similar to basic (losses) earnings per share, except that the denominator is increased to include the potential dilution from our unvested restricted stock awards, that contain non-forfeitable rights to dividends so therefore deemed to participating, for Common Shares using the treasury stock method. The numerator in calculating both basic and diluted (losses) earnings per common share for each period is the reported net (loss) income.

For the year ended December 31, 2024, the Company had basic and diluted weighted average shares of 47,413,012 outstanding, resulting in basic and diluted loss per share of $0.93. As the Company incurred a net loss attributable to common shareholders for the year ended December 31, 2024 all restricted shares would be deemed antidilutive. For the year ended December 31, 2023, the Company had basic and diluted weighted average shares of 44,244,988 outstanding, resulting in basic and diluted earnings per share of $0.27. While the Company had net income attributable to common shareholders for the year ended December 31, 2023, the Company did not adjust the dilutive share calculation based on even if the Company assumed all 222,836 shares of unvested restricted stock at December 31, 2023 were deemed dilutive under the treasury method, the resulting diluted earnings per share would remain unchanged at $0.27.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (FASB ASC 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provides new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 applies retrospectively to all prior periods presented. This update did not have a material impact on the Company’s consolidated financial statements. See Note 1 – The Company for further information.

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income (FASB ASC 220-40): Expense Disaggregation Disclosures” (“ASU 2024-03”). ASU 2024-03 requires additional disclosure in the notes to the financial statements of specified information about certain costs and expenses. The ASU is effective in reporting periods beginning after December 15, 2026, and interim periods within annual periods beginning December 15, 2027, on a prospective or retrospective basis. Early adoption is permitted, and the Company is currently assessing the impact upon adoption of this standard on the consolidated financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted, would have a material effect on the Company’s consolidated financial statements.

Reclassifications

Certain amounts included in the Company’s December 31, 2023 consolidated financial statements have been reclassified to conform to the December 31, 2024 presentation. These reclassifications had no effect on the year ended December 31, 2023 net income.

Fair Value Measurement

12 Months Ended

Dec. 31, 2024

Fair Value Measurement

Fair Value Measurement

3. Fair Value Measurement

The Company uses estimated of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or non-recurring basis. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. The Company groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows:

Level 1 - Inputs that represent quoted prices for identical instruments in active markets.

Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

The following tables illustrate the assets and liabilities measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets:


	December 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Total

Stocks and ETF’s	$	1,517	$	—	$	—	$	1,517
Mutual funds		—		—		—		—
Debt securities		—		—		—		—
Preferred/Fixed rate cap securities		—		—		—		—
Loans held for sale, net		—		—		10,970		10,970


	December 31, 2023
(in thousands)	Level 1		Level 2			Level 3	Total
Stocks and ETF’s	$	1,755	$	—	$	—	$	1,755
Mutual funds		16,237		—		—		16,237
Debt securities		18,945		—		—		18,945
Preferred/Fixed rate cap securities		—		839		—		839
Loans held for sale, net		—		—		—		—

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, upon their acquisition or when there is evidence of impairment). The following table illustrates financial instruments measured at fair value on a nonrecurring basis:


	December 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Total

Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	80,757	$	80,757
Real estate owned, net		—		—		18,574		18,574


	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total

Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	21,597	$	21,597
Real estate owned, net		—		—		3,462		3,462

Carrying amounts and fair values of financial instruments that are not carried at fair value at December 31, 2024 and December 31, 2023 in the Consolidated Balance Sheets are as follows:


	Carrying Amount				Fair Value Measurement
(in thousands)	2024		2023		2024		2023


Level 1
Cash and cash equivalents	$	18,066	$	12,598	$	18,066	$	12,598
Notes payable (listed) – fixed rate debt		231,241		289,482		194,810		260,249
Level 2
Lines of credit and repurchase agreements – variable rate debt		73,708		88,253		73,708		88,253
Level 3
Loans held for investment, net		356,571		487,065		356,571		487,065
Loans held for sale, net		10,970		—		10,970		—
Interest and fees receivable and due from borrowers		8,918		14,072		8,918		14,072
Investments in limited liability companies		53,942		43,036		53,942		43,036
Advances from borrowers		4,047		10,998		4,047		10,998
Mortgage payable		1,002		1,081		1,002		1,081

Following is a description of the methodologies used for assets measured at fair value:

Stocks and ETFs (Level 1): Valued at the closing price reported in the active market in which the individual securities are traded.

Mutual funds (Level 1): Valued at the daily closing price reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset values and to transact at that price. The mutual funds held by the Company are deemed to be actively traded.

Debt securities: Valued at the closing price reported in the active market in which the individual securities are traded.

Preferred/Fixed rate cap securities: The company classifies preferred/fixed rate cap securities as Level 2 in the fair value hierarchy because their fair value is determined using observable inputs such as interest rates and credit spreads. These inputs are based on market data or pricing models rather than quoted prices for identical assets. Since the securities are not actively traded, the company uses observable inputs to estimate their value, making Level 2 the appropriate classification.

Loans held for investment and related interest and fees receivables and due from/advances from borrowers: The fair value of mortgage loans held for investment and related receivable/liability balances is based on credit risk and discount rates that are not observable in the marketplace and therefore represents a Level 3 measurement.

Loans held for sale: The fair value of loans held for sale is determined by the lower of cost or market approach, where cost represents the carrying value of the loans, and market represents the fair value derived from a collateral analysis. Since this analysis involves significant judgment, including assumptions regarding the value of underlying collateral and potential recovery, it constitutes a Level 3 measurement. These assumptions are not readily observable in the market and require significant management estimation.

Individually evaluated loans, net of allowance for credit losses: This category consists of loans that were individually evaluated for credit losses, net of the related allowance for credit losses, and have been classified as Level 3 assets. All of the Company’s individually evaluated loans for 2024 and 2023, whether reporting a specific allowance allocation or not, are considered collateral-dependent. The Company utilized Level 3 inputs such as independent appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%. Please note this category is inclusive of foreclosed loans not held for sale, and is included in loans held for investment.

Real estate owned, net: Real estate owned, net, is classified as a Level 3 asset in the fair value hierarchy due to the significant use of unobservable inputs in determining its fair value. These unobservable inputs typically include estimates based on management’s judgment, such as the anticipated market value, property condition, location, and projected income potential. The Company may adjust such values downward for qualitative factors such as economic conditions and estimated liquidation expenses. The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%. As no active markets or observable inputs exist for these assets, the valuation process involves a higher degree of subjectivity and relies on internal assumptions, appraisals, and models that are not directly observable.

Investments in Limited Liability Companies (LLCs): The Company holds noncontrolling interests in various LLCs accounted for using the measurement alternative under FASB ASC 321. These investments are carried at cost, less impairment, and adjusted for observable price changes.

Fixed rate debt: Fixed rate debt is classified as Level 1 and its fair value is based on quoted prices for similar instruments or calculated utilizing model derived valuations in which significant inputs are observable in active markets.

Variable rate debt: Variable rate debt is classified as Level 2 and the fair values of our borrowings under our revolving credit facility and other variable rate debt are reasonably estimated at their notional amounts due to the predominance of floating interest rates, which generally reflect market conditions.

Mortgage payable: Mortgage payable is classified as Level 3 and the fair value of our borrowings are primarily based on unobservable inputs that effect the Company’s own assumptions about the factors that market participants would use in pricing the mortgage. The mortgage payable does not have a quoted market price in an active market, and significant inputs such as the interest rate, the probability of default, and the estimated repayment terms are not readily observable in the market.

Impact of Fair Value of Available-for-sale Securities on Other Comprehensive (Loss) Income

The following table presents the impact of the Company’s debt securities on its Other Comprehensive Income (“OCI”) for the years ended December 31, 2024 and 2023:


	Year Ended
	December 31,
	2024		2023

	(in thousands)
OCI from AFS debt securities:
Unrealized gain (losses) on debt securities at beginning of period	$	316	$	(562)
Unrealized holding gains on AFS securities		—		69
Reclassification adjustment for gains / losses realized in net (loss) income		(316)		—
Reclassification of losses from unrealized to provision for credit losses		—		809
Change in OCI from AFS debt securities		(316)		878
Balance at end of period	$	—	$	316

As of December 31, 2024, and December 31, 2023, the Company recorded an “Allowance for credit losses” on debt securities of $0 and $0.8 million, respectively, based on unrealized losses for a trailing twelve months, which is presented in “Investment securities (at fair value)” on the Company’s consolidated balance sheets. During the year ended December 31, 2024, the Company sold all of its debt securities, as such, as of December 31, 2024, the balance of these securities was $0. As of December 31, 2023, the fair value of these securities was $0.8 million. The cost basis of these securities was $1.6 million.

- Definition

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

+ References

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

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

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Topic 820
-SubTopic 10
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-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 820
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-Paragraph 6A
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 940
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Loans and Allowance for Credit Losses

Loans and Allowance for Credit Losses

4. Loans and Allowance for Credit Losses

Loans include loans held for investment that are accounted for at amortized cost net of allowance for credit losses and loans held for sale that are accounted for at the lower of cost or market net of a valuation allowance. The classification for a loan is based on management’s strategy for the loan.

Loans held for investment

The Company offers secured, non-bank loans to real estate owners and investors (also known as “hard money” loans) to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut, New York and Florida. The Company’s lending standards typically require that the original principal amount of all mortgage receivable notes be secured by first mortgage liens on one or more properties owned by the borrower or related parties and that the maximum LTV be no greater than 70% of the appraised value of the underlying collateral, as determined by an independent appraiser at the time of the loan origination. The Company considers the maximum LTV as an indicator for the credit quality of a mortgage note receivable. In the case of properties undergoing renovation, the loan-to-value ratio is calculated based on the estimated fair market value of the property after the renovations have been completed. However, the Company makes exceptions to this guideline if the facts and circumstances support the incremental risk. These factors include the additional collateral provided by the borrower, the credit profile of the borrower, the Company’s previous relationship, if any, with the borrower, the nature of the property, the geographic market in which the property is located and any other information the Company deems appropriate.

The loans are generally for a term of one to three years. The loans are initially recorded and carried thereafter, in the financial statements, at cost. Most of the loans provide for monthly payments of interest only (in arrears) during the term of the loan and a balloon payment of the principal on the maturity date.

As of December 31, 2024, and 2023, the Company had 157 and 311 loans held for investment, respectively.

Loans held for sale

The Company offers mortgage notes receivable to be sold in real estate capital markets. The Company does not originate loans for the use of loans held for sale, as these loans were a part of a non-recurring event of being transferred from loans held for investment to loans held for sale. As of December 31, 2024, the Company maintained 11 loans held for sale with a gross outstanding principal balance of $15.9 million, of which had an aggregate valuation allowance of $4.9 million in connection with pricing based on lower of cost or market. As of December 31, 2024, such loans were on nonaccrual status and in pending/pre-foreclosure. There were no such loans held for sale as of December 31, 2023.

Loan Sale

In October 2024. the Company retained Mission Capital, a subsidiary of Marcus and Millichap, which is a real estate capital markets firm, as our sole and exclusive advisor for the proposed sale of a pool of mortgage loans. A majority of these loans were classified as “non-accrual,” meaning payments of interest owed are more than 90 days overdue. In December 2024, the Company entered into certain Purchase and Sale Agreements with three third party purchasers related to certain non-performing loans that were held for sale. The Company accounted for the transfer of financial assets as a sale, recognizing a loss on sale of $22.0 million, with total net cash proceeds from the sale of $36.1 million and the derecognition of loans held for sale of $55.8 million. The Company has no continuing involvement with the transferred loan assets after the date of transfer and did not retain any interest in the transferred assets. The loans were sold to the purchasers without recourse. In connection with the sale, the Company incurred a loss of $19.7 million on principal and $2.3 million on charges due from such loans, which is presented on the consolidated statement of operations in loss on sale of loans. During the sale process, the Company removed $15.9 million of loans that were initially included in the sale, and these remain as loans held for sale as noted above.

Loan portfolio

As of December 31, 2024, and 2023, loans held for investment on nonaccrual status had an outstanding principal balance of $87.0 million and $84.6 million, respectively. The nonaccrual loans are inclusive of loans pending foreclosure and loans held for sale. For the year ended December 31, 2024 and 2023, $0.7 million and $0.6 million of interest income was recorded on nonaccrual loans due to payments received, respectively. As of December 31, 2024, and 2023, the Company had direct reserves on outstanding principal of $13.3 million and $5.2 million, respectively. The below table summarizes the Company’s loan portfolio by the past due status:


	Loans held for investment
(in thousands)	Current		30-59 days past due		60-89 days past due		Greater than 90 days		Total
As of December 31, 2024	$	223,513	$	49,460	$	16,936	$	87,082	$	376,991
As of December 31, 2023	$	332,212	$	78,577	$	3,855	$	84,591	$	499,235

For the years ended December 31, 2024 and 2023, the aggregate amounts of loans funded by the Company were $134.3 million and $204.9 million, respectively, offset by principal repayments of $191.0 million and $167.0 million, respectively.

As of December 31, 2024, the Company’s mortgage loan portfolio includes loans ranging in size up to $42.9 million with stated interest rates ranging from 6.5% to 15.0%. The default interest rate is generally 18% but could be more or less depending on state usury laws and other considerations deemed relevant by the Company.

As of December 31, 2024 and 2023, the Company had one borrower representing 14.0% and 10.1% of the outstanding mortgage loan portfolio, or $55.0 million and $50.4 million, respectively.

Deferred loan fees

As of December 31, 2024 and 2023, the Company had $2.0 million and $4.6 million of deferred loan fee revenue relating to loans held for investment, respectively. There were no such deferred fees for loans held for sale as of December 31, 2024 and 2023. In-line with the Company’s accounting policy for revenue recognition, origination, modification, extension and construction servicing fee revenue is collected at loan funding and is recognized ratably over the contractual life of the loan in accordance with FASB ASC 310 (Receivables). In accordance with FASB ASC 310-20-45-1, the Company has presented deferred loan fees net of the related loan balance on its consolidated balance sheets. This presentation reflects the net amount of revenue that is expected to be recognized after considering the outstanding loan balance associated with certain customer arrangements. This presentation aligns with the guidance in FASB ASC 310-20, which permits the net presentation of loan balances with deferred loan fees when the loan is associated with the future performance obligations of the Company. The loan is considered an integral part of the transaction, and as such, the net amount more accurately reflects the remaining obligations of the Company to the customer, as well as the revenue to be recognized.

The Company may agree to extend the term of a loan if, at the time of the extension, the loan and the borrower meet all the Company’s underwriting requirements. The Company treats a loan extension as a new loan. If an interest reserve is established at the time a loan is funded, accrued interest is paid out of the interest reserve and recognized as interest income at the end of each month. If no reserve is established, the borrower is required to pay the interest monthly from its own funds. The deferred origination, loan servicing and amendment fee income represents amounts that will be recognized over the contractual life of the underlying mortgage notes receivable.

Allowance for credit loss

The below table represents the financial statement line items that are impacted by the Allowance for Credit Losses for the year ended December 31, 2024:


	Balance as of		Provision for credit				Balance as of
	December 31, 2023		losses related to loans		Charge-offs		December 31, 2024

	(in thousands)
Loans	$	7,523	$	22,405	$	(11,458)	$	18,470
Interest and fees receivable		902		2,231		—		3,133
Due from borrower		352		1,877		(1,094)		1,135
Unfunded commitments		509		415		—		924
Total Allowance for credit losses	$	9,286	$	26,928	$	(12,552)	$	23,662

The below table represents the financial statement line items that are impacted by the CECL allowance:


			Allowance for
			credit losses on
	Adoption as		loans – pre-		Provision for credit				Balance as of
	of January 1, 2023		adoption		losses related to loans		Charge-offs		December 31, 2023

	(in thousands)
Loans	$	1,921	$	105	$	5,497	$	—	$	7,523
Interest receivable		26		782		94		—		902
Due from borrower		21		338		10		(17)		352
Unfunded commitments		522		—		(13)		—		509
Total CECL allowance	$	2,490	$	1,225	$	5,588	$	(17)	$	9,286

The following table summarizes the activity in the loans held for investment allowance for credit losses for the year ended December 31, 2024:


	Allowance for credit losses						Allowance for credit losses
	as of		Provision for credit losses				as of
	December 31,		related to				December 31,
(in thousands)	2023		loans		Charge-offs		2024
Geographical Location
New England	$	5,764	$	13,859	$	(6,779)	$	12,844
Mid-Atlantic		1,324		533		—		1,857
South		435		6,046		(4,679)		1,802
West		—		1,967		—		1,967
Total	$	7,523	$	22,405	$	(11,458)	$	18,470

The following table summarizes the activity in the loans held for investment allowance for credit losses from adoption on January 1, 2023, through December 31, 2023:


									Allowance for credit losses
	Allowance for credit losses				Provision for credit losses				as of
	on loans-		Adoption of ASU		related to				December 31,
(in thousands)	re-adoption		2016-13		loans held for investment		Charge-offs		2023
Geographical Location
New England	$	105	$	1,302	$	4,357	$	—	$	5,764
West		—		7		(7)		—		—
South		—		402		33		—		435
Mid-Atlantic		—		210		1,114		—		1,324
Total	$	105	$	1,921	$	5,497	$	—	$	7,523

The following table presents charge-offs by fiscal year of origination as of the year ended December 31, 2024:


	2024		2023		2022		2021		2020		Prior		Total
(in thousands)
Current period charge-offs	$	—	$	—	$	5,550	$	5,897	$	11	$	—	$	11,458
Total	$	—	$	—	$	5,550	$	5,897	$	11	$	—	$	11,458

Presented below is the Company’s loans portfolio by geographical location:


		December 31, 2024				December 31, 2023
(in thousands)	Carrying Value		% of Portfolio			Carrying Value		% of Portfolio
Geographical Location
Loans held for investment:
New England	$	179,421		47.6	%	$	232,437	46.6	%
Mid-Atlantic		42,304		11.2	%		4,101	0.8	%
South		151,165		40.1	%		163,409	32.7	%
West		4,101		1.1	%		99,288	19.9	%
Total		376,991		100.0	%		499,235	100.0	%

The following tables allocate the carrying value of the Company’s loan portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:


	December 31, 2024
	Carrying
FICO Score ⁽²⁾(in thousands)	Value		2024		2023		2022	2021		2020		Prior
Loans held for investment:
Under 500	$	140	$	140	$	—	—	$	—	$	—	$	—
501-550		2,860		—		—	—		1,060		—		1,800
551-600		7,094		1,222		290	2,170		1,816		636		960
601-650		28,779		8,432		3,347	1,798		7,411		6,149		1,642
651-700		35,711		4,250		7,177	10,302		12,079		660		1,243
701-750		159,575		6,275		40,459	11,982		97,980		1,023		1,856
751-800		124,599		26,465		32,016	36,280		28,427		1,411		—
801-850		18,233		—		415	17,818		—		—		—
Total		376,991	$	46,784	$	83,704	80,350	$	148,773	$	9,879	$	7,501

(1)Represents the year of origination or amendment where the loan was subject to a full re-underwriting.

(2)The FICO Scores are calculated at the inception of the loan and are updated if the loan is modified or on an as needed basis.


	December 31, 2023			Year Originated⁽¹⁾
	Carrying
FICO Score ⁽²⁾ (in thousands)	Value		2023		2022		2021		2020		2019		Prior
Under 500	$	1,764	$	216	$	—	$	—	$	—	$	—	$	1,548
501-550		6,555		2,331		1,440		1,864		—	$	362		558
551-600		33,723		15,019		9,839		6,854		1,127	$	337		547
601-650		103,601		16,053		26,981		52,073		3,988	$	4,187		319
651-700		97,284		17,862		40,318		30,203		3,662	$	3,015		2,224
701-750		167,977		19,935		51,276		83,946		7,411	$	2,901		2,508
751-800		64,313		14,461		20,806		27,027		592	$	689		738
801-850		24,018		865		23,096		—		—	$	—		57
Total		499,235	$	86,742	$	173,756	$	201,967	$	16,780	$	11,491	$	8,499

(1)Represents the year of origination or amendment where the loan was subject to a full re-underwriting.

(2)The FICO Scores are calculated at the inception of a loan and are updated if the loan is modified or on an as needed basis.

Loan modifications made to borrowers experiencing financial difficulty

In certain situations, the Company may provide loan modifications to borrowers experiencing financial difficulty. These modifications may include term extensions, and adding unpaid interest, charges and taxes to the principal balance intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company generally receives additional collateral as part of extending the terms of the loan for borrowers experiencing financial difficulty.

The Company monitors the performance of loans modified to borrowers experiencing financial difficulty. The Company considers loans that are 90 days past due to be in payment default.

The table below presents loan modifications made to borrowers experiencing financial difficulty:


	Year Ended December 31, 2024
			% of Total
			Carrying Value of
(in thousands)	Carrying Value		Loans held for investment, net		Financial Effect
Loans modified during the period ended
Term extension	$	108,045	30.1	%	A weighted average of 11.5 months were added to the life of the loans
Principal modification, with no term extension	$	12,173	3.4	%	Unpaid interest/taxes/charges added to principal balance

The Company monitors the performance of loans modified to borrowers experiencing financial difficulty. The table below presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty. The Company considers loans that are 90 days past due to be in payment default.


	Year Ended December 31, 2024
(in thousands)	Current		90-119 days past due		120+ days past due		Total
Loans modified during the period ended
Term extension	$	61,145	$	250	$	46,345	$	108,045
Principal modification, with no term extension	$	12,173	$	—	$	—	$	12,173

The Company has committed to lend additional amounts totaling approximately $23.1 million to borrowers experiencing financial difficulty. Of the loans that were modified that experienced financial difficulties during the year, six loans defaulted within twelve months of the modification. These loans had an aggregate outstanding balance of $5.7 million which represented 1.6% of the portfolio. Of the loans that were modified that experienced financial difficulties during the year, ten loans with an outstanding principal balance of $12.2 million, experienced rate decreases due to the modification. The change in the rate was taking the loans off default rate.

The table below presents loan modifications made to borrowers experiencing financial difficulty:


	Year Ended December 31, 2023
			% of Total
			Carrying Value of
(in thousands)	Carrying Value		Loans held for investment, net		Financial Effect
Loans modified during the period ended
Term extension	$	77,138	15.7	%	A weighted average of 16.7 months were added to the life of the loans
Principal modification, with no term extension	$	20,342	4.1	%	Unpaid interest/taxes/charges added to principal balance

The Company monitors the performance of loans modified to borrowers experiencing financial difficulty. The table below presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty. The Company considers loans that are 90 days past due to be in payment default.


	Year Ended December 31, 2023
(in thousands)	Current		90-119 days past due		120+ days past due		Total
Loans modified during the period ended
Term extension	$	73,037	$	—	$	4,101	$	77,138
Principal modification, with no term extension	$	18,777	$	1,565	$	—	$	20,342

As of December 31, 2023, the Company had committed to lend additional amounts totaling approximately $18.7 million to borrowers experiencing financial difficulty. Of the loans that were modified that experienced financial difficulties during the year, one loan defaulted within twelve months of the modification. This loan had an outstanding balance of $1.6 million, which represented 0.3% of the portfolio. Of the loans that were modified that experienced financial difficulties during the year, fourteen loans with an aggregate outstanding principal balance of $29.1 million, experienced rate decreases due to the modification. The change in the rate was taking the loans off default rate.

Investment in Rental Real Estate, net

12 Months Ended

Dec. 31, 2024

Investment in Rental Real Estate, net

Investment in Rental Real Estate, net

5. Investment in Rental Real Estate, net

For the years ended December 31, 2024 and 2023, investment in rental real estate, net consisted of the following:


					Investment in Rental
Year Ending December 31, 2024	Cost		Accumulated Depreciation		Real Estate, Net

	(in thousands)
Land	$	4,557	$	—	$	4,557
Building		4,936		(154)		4,782
Site improvements		359		(30)		329
Tenant improvements		1,223		—		1,223
Construction in progress		3,141		—		3,141
Total	$	14,216	$	(184)	$	14,032


					Investment in Rental
Year Ending December 31, 2023	Cost		Accumulated Depreciation		Real Estate, Net

	(in thousands)
Land	$	3,957	$	—	$	3,957
Building		4,936		(31)		4,905
Site improvements		359		(6)		353
Tenant improvements		1,183		—		1,183
Construction in progress		157		—		157
Total	$	10,591	$	(37)	$	10,554

Building and site improvements are being depreciated using the straight-line method over its estimated useful life of 40 years and 15 years, respectively. Tenant improvements are amortized over the life of the respective lease using the straight-line method. Lease in-place intangible assets, deferred leasing costs and acquired below-market leases are amortized on a straight-line basis over the respective life of the lease. For the year ended December 31, 2024, depreciation and amortization related to the asset was $0.1 million , which is presented in “Other expenses” on the Company’s consolidated Statements of Operations. Tenant improvements and other intangibles associated with the tenant are not being amortized until the commencement of the lease which is not until 2025.

Additionally, the Company leases space to a tenant under an operating lease. The lease provides for the payment of fixed base rent payable monthly in advance and periodic step-ups in rent over the term of the lease and a pass through to tenants their share of increases in real estate taxes and operating expenses over a base year. The lease also provides for free rent and a tenant improvement allowance of $2.7 million. The lease commences February 2025 with a cash rent abatement period of 425 days.

As of December 31, 2024, future minimum rents under non-cancelable operating leases were as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	—
2026		1,040
2027		1,269
2028		1,294
2029		1,320
Thereafter		8,741
Total	$	13,664

As of December 31, 2024, estimated annual amortization of acquired below-market lease intangible is as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	66
2026		66
2027		66
2028		66
2029		66
Thereafter		335
Total	$	665

As of December 31, 2024, estimated annual amortization of acquired in-place lease intangible is as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	57
2026		57
2027		57
2028		57
2029		57
Thereafter		283
Total	$	568

As of December 31, 2024, estimated annual amortization of deferred leasing costs is as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	39
2026		39
2027		39
2028		39
2029		39
Thereafter		192
Total	$	387

In addition, the Westport Purchase Agreement contains a provision requiring the payment of an Additional Purchase Price, as defined, upon the earlier to occur of:

●

the Company closing on any construction financing on the Project (as defined); or

●

twelve months following receipt of all zoning and other state and municipal permits and approvals necessary to construct certain residential units (as defined).

These payments represent contingent consideration in connection with this acquisition, requiring accrual when the payments are deemed probable and reasonably estimable. In January 2024, the Company submitted a proposal to the town of Westport for eight market rate residential units and two affordable rate units. Those units were approved in March 2024, subject to a 30-day appeal period. In April 2024, the 30-day appeal period for the Westport Asset land approval expired, and the Company deemed these events which would give rise to a payment of Additional Purchase Price allocated to land to be considered probable. Accordingly, the agreed payment of $0.1 million per certain approved and sold or permitted market rate residential units has been recognized. The expected payment is $0.6 million and has been accrued as of December 31, 2024 and is included in Accounts payable and accrued liabilities on the consolidated balance sheets included in the accompanying consolidated financial statements.

Real Estate Owned (REO)

12 Months Ended

Dec. 31, 2024

Real Estate Owned (REO)

Real Estate Owned (REO)

6. Real Estate Owned (REO)

Property acquired through foreclosure are included on the consolidated balance sheets as real estate owned and further categorized as held for sale or held for rental, described in detail below.

As of December 31, 2024, and 2023, real estate owned, net totaled $18.6 million and $3.5 million, respectively. During the year ended December 31, 2024, the Company’s real estate owned portfolio recorded an impairment loss of $0.5 million compared to an impairment loss of $0.8 million in 2023, which is considered a level 3 non-recurring fair market value adjustment.

The following table presents the Company’s REO as of December 31, 2024 and 2023:


	Year Ended
	December 31,
	2024		2023

	(in thousands)
Real estate owned at the beginning of year	$	3,462	$	5,216
Principal basis transferred to real estate owned		28,640		1,756
Charge-off’s on principal transferred		(11,361)		—
Charges and building improvements		509		230
Proceeds from sale of real estate owned		(2,613)		(3,040)
Impairment loss		(492)		(794)
Gain on sale of real estate owned		429		94
Balance at end of year	$	18,574	$	3,462

As of December 31, 2024, REO included $0.8 million of real estate held for rental and $17.8 million of real estate held for sale. As of December 31, 2023, REO included $0.8 million of real estate held for rental and $2.7 million of real estate held for sale.

Properties Held for Sale

During the year ended December 31, 2024, the Company sold seven properties held for sale and recognized an aggregate gain of $0.4 million. During the year ended December 31, 2023, the Company sold seven properties held for sale and recognized an aggregate gain of $0.1 million. Such gains are included in, “Loss (gain) on sale of real estate owned and property and equipment, net” on the Compnay’s consolidated Statements of Operations.

Properties Held for Rental

As of December 31, 2024, one property, a commercial building, was held for rental. The tenant signed a 5-year lease that commenced on August 1, 2021.

As of December 31, 2024, future minimum rents under this lease were as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	53
2026		31
Total	$	84

Other Assets

12 Months Ended

Dec. 31, 2024

Other Assets

Other Assets

7. Other Assets

As of December 31, 2024, and December 31, 2023, other assets consist of the following:


	December 31, 2024		December 31, 2023

	(in thousands)
Prepaid expenses	$	575	$	511
Other receivables		1,793		1,923
Other assets		190		538
Notes receivable		2,130		4,508
Deferred leasing cost		387		387
Leases in place intangible		568		568
Goodwill		391		391
Intangible asset – trade name		130		130
Total	$	6,164	$	8,956

Line of Credit, Mortgage Payable, and Churchill Facility

12 Months Ended

Dec. 31, 2024

Line of Credit, Mortgage Payable, and Churchill Facility

Line of Credit, Mortgage Payable, and Churchill Facility

8. Line of Credit, Mortgage Payable, and Churchill Facility

Wells Fargo Margin Line of Credit

During the year ended December 31, 2020, the Company established a margin loan account at Wells Fargo Advisors that is secured by the Company’s portfolio of short-term securities. The credit line bears interest at a rate equal to 1.75% below the prime rate. During the second quarter of 2024, the Company sold all of its investment securities that collateralized the line of credit. As such, the balance of the line of credit as of December 31, 2024, was $0. At December 31, 2023, the total outstanding balance on the Wells Fargo credit line was $26.8 million.

Line of Credit – Needham Bank

On March 2, 2023, the Company entered into a Credit and Security Agreement (the “Credit Agreement”), with Needham Bank, a Massachusetts co-operative bank, as the administrative agent (“Needham”) for the lenders party thereto (the “Lenders”) with respect to a $45 million revolving credit facility (the “Needham Credit Facility”). Under the Credit Agreement, the Company also had the right to request an increase in the size of the Needham Credit Facility up to $75 million, subject to certain conditions, including the approval of the Lenders. As of September 8, 2023, the Needham Credit Facility was increased to $65 million.

As of December 31, 2024 and December 31, 2023, the total outstanding principal balance on the Needham Credit Facility was $40.0 million and $35.0 million, respectively, with an interest rate of 7.25% and 8.25%, respectively.

Loans under the Needham Credit Facility accrue interest at the greater of (i) the annual rate of interest equal to the “prime rate,” as published in the “Money Rates” column of The Wall Street Journal minus one-quarter of one percent (0.25%), and (ii) four and one-half percent (4.50%). All amounts borrowed under the Needham Credit Facility are secured by a first priority lien on virtually all of the Company’s assets. Assets excluded from the lien include real estate owned by the Company (other than real estate acquired pursuant to foreclosure) and mortgages sold under the Churchill Facility (as defined below). The Needham Credit Facility expires March 2, 2026, but the Company has a right to extend the term for one year upon the consent of Needham and the Lenders, which consent cannot be unreasonably withheld, and so long as it is not in default and satisfies certain other conditions. All outstanding revolving loans and accrued but unpaid interest is due and payable on the expiration date. The Company may terminate the Needham Credit Facility at any time without premium or penalty by delivering written notice to Needham at least ten (10) days prior to the proposed date of termination. The Needham Credit Facility is subject to other terms and conditions, including representations and warranties, covenants and agreements typically found in these types of financing arrangements, including a covenant that requires the Company to maintain: (A) a ratio of Adjusted EBITDA (as defined in the Credit Agreement) to Debt Service (as defined in the Credit Agreement) of not less than 1.40 to 1.0, tested on a trailing-twelve-month basis at the end of each fiscal quarter; (B) a sum of cash, cash equivalents and availability under the facility equal to or greater than $10 million; and (C) an asset coverage ratio of at least 150%.

As of December 31, 2024, the Company was not in compliance with the debt service coverage ratio covenant described above.

On March 20, 2025, we terminated our existing Needham Credit Facility and replaced it with a new Credit Facility with Needham. Except as described below, the new Credit Facility is identical to the old Credit Facility in all material respects:

●

First, under the new agreement the borrower is SN Holdings LLC, a Connecticut limited liability company formed and wholly owned by Sachem Capital Corp. for the sole purpose of acting as the borrower under the new agreement. Sachem Capital Corp. is the guarantor of all SN Holdings’ obligations under the new agreement.

●

Second, SN Holdings, in its capacity as borrower, granted Needham a lien on all its assets. SN Holdings is required to maintain assets equal to 2 times of the outstanding balance on the new credit facility. In addition, SN Holdings is required to collaterally assign to Needham mortgage loans having an outstanding principal balance in an amount no less than the greater of (i) $30 million and (ii) the aggregate principal outstanding principal balance on the facility.

●

Third, Sachem Capital Corp., in its capacity as guarantor, agreed to grant Needham a blanket lien on all its assets. However, Needham is required to release its lien at Sachem’s request to facilitate other financing at the Sachem Capital Corp. and subsidiaries level.

●

Fourth, the size of the new credit facility is a committed facility of up $50 million, subject to borrowing base limitations and facility covenant compliance.

●

Fifth, the new Needham Credit Facility retained the same maturity of March 2, 2026 as original term with the option to extend one year provided we are in compliance with all the covenants and other terms and conditions of the new Needham Credit Facility.

Simultaneously with the execution and delivery of the Credit, Security and Guaranty Agreement, dated as of March 20, 2025, among SN Holdings, Sachem and Needham, which governs the new Credit Facility, Sachem Capital Corp. repaid the entire outstanding balance on the old credit facility, $39.6 million, and SN Holdings drew $36.1 million on the new credit facility, reducing our outstanding indebtedness by $3.5 million. As of March 20, 2025, the Company was no longer in violation of any Credit Facility covenants.

Mortgage Payable

In 2021, the Company obtained a $1.4 million adjustable-rate mortgage loan from New Haven Bank (the “Old NHB Mortgage”) of which $750,000 was funded at closing to reimburse the Company for out-of-pocket costs relating to the acquisition of the property located at 568 East Main Street, Branford, Connecticut, which now serves as the Company’s headquarters. The Old NHB Mortgage accrued interest at an initial rate of 3.75% per annum for the first 72 months and was due and payable in full on December 1, 2037. The Old NHB Mortgage was a non-recourse loan, secured by a first mortgage lien on the Company’s prior headquarters, which was located at 698 Main Street, Branford, Connecticut and the property located at 568 East Main Street, Branford, Connecticut.

On February 28, 2023, the Company refinanced the Old NHB Mortgage with an adjustable-rate mortgage loan from New Haven Bank (the “NHB Mortgage”) in the original principal amount of $1.66 million. The loan accrues interest at an initial rate of 5.75% per annum for the first 60 months. The interest rate will be adjusted on each of March 1, 2028, and March 1, 2033, to the then published 5-year Federal Home Loan Bank of Boston Classic Advance Rate, plus 1.75%. Beginning on April 1, 2023, and through March 1, 2038, principal and interest will be due and payable on a monthly basis. All payments under the loan are amortized based on a 20-year amortization schedule. Over the next five years, the Company is scheduled to make principal payments ranging from $47,000 to $59,000 annually, with the remaining balance due thereafter. The unpaid principal amount of the loan and all accrued and unpaid interest are due and payable in full on March 1, 2038. The loan is a non-recourse obligation, secured by a first mortgage lien on the property located at 568 East Main Street, Branford, Connecticut.

As of December 31, 2024 and 2023, the total outstanding principal balance on the NHB Mortgage was $1.0 million and $1.1 million, respectively.

Churchill MRA Funding I LLC Repurchase Financing Facility

On July 21, 2021, the Company consummated a $200 million master repurchase financing facility (“Churchill Facility”) with Churchill MRA Funding I LLC (“Churchill”), a subsidiary of Churchill Real Estate, a vertically integrated real estate finance company based in New York, New York. Under the terms of the Churchill Facility, the Company has the right, but not the obligation, to sell mortgage loans to Churchill, and Churchill has the right, but not the obligation, to purchase those loans. In addition, the Company has the right and, in some instances the obligation, to repurchase those loans from Churchill. The amount that Churchill will pay for each mortgage loan it purchases will vary based on the attributes of the loan and various other factors. The repurchase price is calculated by applying an interest factor, as defined, to the purchase price of the mortgage loan. The Company has also pledged the mortgage loans sold to Churchill to secure its repurchase obligation. The cost of capital under the Churchill Facility is equal to the sum of (a) the greater of (i) 0.25% and (ii) the 90-day SOFR (which replaced the 90-day LIBOR) plus (b) 3%-4%, depending on the aggregate principal amount of the mortgage loans held by Churchill at that time. As of December 31, 2024 and 2023, the effective interest rate charged under the facility was 8.69% and 9.47%, respectively.

The Churchill Facility is subject to other terms and conditions, including representations and warranties, covenants and agreements typically found in these types of financing arrangements. Under one such covenant, the Company (A) is prohibited from (i) paying any dividends or making distributions in excess of 90% of its taxable income, (ii) incurring any indebtedness or (iii) purchasing any of its capital stock, unless, it has an asset coverage ratio of at least 150%; and (B) must maintain unencumbered cash and cash equivalents in an amount equal to or greater than 2.50% of the amount of its repurchase obligations. Churchill has the right to terminate the Churchill Facility at any time upon 180 days prior notice to the Company. The Company then has an additional 180 days after termination to repurchase all the mortgage loans held by Churchill.

The Company uses the proceeds from the Churchill Facility to finance the continued expansion of its lending business and for general corporate purposes.

The following table summarizes the outstanding balances under the Churchill Facility agreement:



	December 31, 2024				December 31, 2023
	Total				Total
(in thousands)	Outstanding		Rate		Outstanding		Rate
Repurchase Agreement	$	33,708	8.69	%	$	26,461	9.47	%
Total	$	33,708			$	26,461

The following table summarizes loans held for investment pledged as collateral under the Churchill Facility agreement:


	December 31, 2024			December 31, 2023
	Total Carrying Value			Total Carrying Value
(in thousands)	Loans Pledged		Number of Loans	Loans Pledged		Number of Loans
Loans held for investment sold under the repurchase agreement	$	66,365	17	$	50,635	14
Total	$	66,365		$	50,635

The following table summarizes the contractual maturities for loans held for investment sold under the repurchase agreement:


	December 31, 2024		December 31, 2023

	(in thousands)
Maturing within 1 year	$	56,050	$	33,389
After 1 but within 2 years		10,315		17,246
Total	$	66,365	$	50,635

The NHB Mortgage and the Churchill Facility contain cross-default provisions.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

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

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

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Unsecured Notes Payable

12 Months Ended

Dec. 31, 2024

Unsecured Notes Payable

Unsecured Notes Payable

9. Unsecured Notes Payable

At December 31, 2024, the Company had an aggregate of $230.2 million of unsecured, unsubordinated notes payable outstanding, net of $3.7 million of deferred financing costs (collectively, the “Notes”).

(i)Notes having an aggregate principal amount of $56.4 million bearing interest at 7.75% per annum and maturing September 30, 2025 (the “September 2025 Notes”);

(ii)Notes having an aggregate principal amount of $51.8 million bearing interest at 6.0% per annum and maturing December 30, 2026 (the “December 2026 Notes”);

(iii)Notes having an aggregate principal amount of $51.9 million bearing interest at 6.0% per annum and maturing March 30, 2027 (the “March 2027 Notes”);

(iv)Notes having an aggregate principal amount of $30.0 million bearing interest at 7.125% per annum and maturing June 30, 2027 (the “June 2027 Notes”); and

(v)Notes having an aggregate principal amount of $40.3 million bearing interest at 8.00% per annum and maturing September 30, 2027 (the “September 2027 Notes”).

The Notes were sold in underwritten public offerings, were issued in denomination of $25.00 each and are listed on the NYSE American and trade under the symbols “SCCC,” “SCCD,” “SCCE,” “SCCF” and “SCCG,” respectively. All the Notes were issued at par except for the last tranche of the September 2025 notes, in the original principal amount of $28 million, which were issued at $24.75 each. Interest on the Notes is payable quarterly on each March 30, June 30, September 30 and December 30 that they are outstanding. So long as the Notes are outstanding, the Company is prohibited from making distributions in excess of 90% of its taxable income, incurring any additional indebtedness or purchasing any shares of its capital stock unless it has an “Asset Coverage Ratio” of at least 150% after giving effect to the payment of such dividend, the incurrence of such indebtedness or the application of the net proceeds, as the case may be. The Company may redeem the Notes, in whole or in part, without premium or penalty, at any time after their second anniversary of issuance upon at least 30 days prior written notice to the holders of the Notes. The redemption price will be equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up to, but not including the date of redemption. Currently, all the Notes are callable at any time.

The following are the future principal payments on the notes payable as of December 31, 2024:


Years ending December 31,	Amount
	(in thousands)
2025	$	56,364
2026		51,750
2027		122,125
Total principal payments		230,239
Deferred financing costs		(3,713)
Total notes payable, net of deferred financing costs	$	226,526

The estimated amortization of the deferred financing costs as of December 31, 2024 is as follows:


Years ending December 31,	Amount
	(in thousands)
2025	$	1,808
2026		1,410
2027		495
Total deferred costs	$	3,713

Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2024

Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities

10. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities include the following:


	December 31, 2024		December 31, 2023

	(in thousands)
Accounts payable and accrued expenses	$	2,928	$	1,331
Allowance for credit losses on unfunded commitments		924		509
Accrued interest		525		482
Total	$	4,377	$	2,322

Fee Income from Loans

12 Months Ended

Dec. 31, 2024

Fee Income from Loans

Fee Income from Loans

11. Fee Income from Loans

For the years ended December 31, 2024 and 2023, fee income from loans consists of the following:


	Year Ended
	December 31,
	2024		2023

	(in thousands)
Origination and modification fees	$	5,088	$	5,941
Extension fees		990		1,236
Late and other fees		331		719
Processing fees		96		121
Construction servicing fees		457		1,015
Legal fees		250		432
Other fees		1,382		1,235
Total	$	8,594	$	10,699

Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies

Commitments and Contingencies

12. Commitments and Contingencies

Unfunded Commitments

At December 31, 2024, the Company had future funding obligations on loans held for investment totaling $49.9 million and obligations relating to investments in limited liability companies totaling $4.4 million, which can be drawn by the borrowers when the conditions relating thereto have been satisfied. The unfunded commitments will be funded from loan payoffs and additional drawdowns under existing and future credit facilities and proceeds from sale of debt and equity securities. The Company’s unfunded commitments are subject to allowances under the scope of CECL, see Note 4 – Loans and Allowance for Credit Losses for further details.

Litigation

The Company is subject to various pending and threatened legal proceedings or other matters arising out of the normal conduct of business in which claims for monetary damages are asserted. As of the date of this report, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of such pending or threatened matters will be material to the Company’s consolidated financial position. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with such matters. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent such matters could result in exposure in excess of that liability, the amount of such excess is not currently estimable. The range of losses for matters where an exposure is not currently estimable or considered probable is not believed to be material in the aggregate. This is based on information currently available to the Company and involves elements of judgment and significant uncertainties. While the Company does not believe that the outcome of pending or threatened litigation or other matters will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future. In addition, regardless of the ultimate outcome of any such legal proceeding, inquiry or investigation, any such matter could cause the Company to incur additional expenses, which could be significant, and possibly material, to the Company’s results of operations in any future period.

Other

In the normal course of its business, the Company is named as a party-defendant in connection with tax foreclosure proceedings against properties on which it holds a first mortgage lien. The Company actively monitors these actions and, in all cases, believes there remains sufficient value in the subject property to assure that no loan impairment exists. At December 31, 2024, there were two such properties. The unpaid principal balance on the properties that are subject to these proceedings was $1.9 million.

Related Party Transactions

12 Months Ended

Dec. 31, 2024

Related Party Transactions

Related Party Transactions

13. Related Party Transactions

In the ordinary course of business, the Company may originate, fund, manage and service loans to shareholders. The underwriting process on these loans adheres to prevailing Company policy. The terms of such loans, including the interest rate, income, origination fees and other closing costs, are the same as those applicable to loans made to unrelated third parties in the portfolio. As of December 31, 2024, and 2023, loans to known shareholders totaled $17.2 million and $25.6 million, respectively, which is included in loans held for investment, net in the Company’s accompanying consolidated balance sheets. Of the $17.2 million and $25.6 million loans to known shareholders as of December 31, 2024, and 2023, $17.0 million and $25.0 million, respectively, related to Mod 21, LLC, which is a wholly owned entity of the Company’s Senior Vice President of Asset Management and Vice President of Asset Management. All of such loans are performing, and interest income earned on all related party loans for the years ended December 31, 2024 and 2023 totaled $1.4 million and $2.4 million, respectively.

In December 2021, the Company hired the daughter of the Company’s Chief Executive Officer to perform certain internal audit and compliance services. For the years ended December 31, 2024 and 2023, she received compensation of $0.2 million and $0.2 million, respectively.

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2024

Concentrations of Credit Risk

Concentrations of Credit Risk

14. Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments in securities, investments in limited liability companies, and mortgage loans.

The Company maintains its cash and cash equivalents with various financial institutions. Accounts at the financial institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.

Concentrations of credit risk related to loans geographical location and property type may be affected by changes in economic or other conditions of the particular geographic area or particular asset type that collateralize the Company’s mortgage loans. For further details see Note 4 – Loans and Allowances for Credit Losses.

Credit risks associated with the Company’s mortgage loan portfolio and related interest receivable are described in Note 4 – Loans and Allowance for Credit Losses.

Stock-Based Compensation and Employee Benefits

12 Months Ended

Dec. 31, 2024

Stock-Based Compensation and Employee Benefits

Stock-Based Compensation and Employee Benefits

15. Stock-Based Compensation and Employee Benefits

Stock-Based Compensation

On October 27, 2016, the Company adopted the 2016 Equity Compensation Plan (the “Plan”), the purpose of which is to align the interests of the Company’s officers, other employees, advisors and consultants or any subsidiary, if any, with those of the Company’s shareholders and to afford an incentive to such officers, employees, consultants and advisors to continue as such, to increase their efforts on the Company’s behalf and to promote the success of the Company’s business. The Plan is administered by the Compensation Committee. The maximum number of Common Shares reserved for the grant of awards under the Plan is 1,500,000, subject to adjustment as provided in Section 5 of the Plan. The number of securities remaining available for future issuance under the Plan as of December 31, 2024 was 781,262. The number of shares issuable to any one individual in a plan year is also limited to 100,000 shares, subject to adjustment as provided for in the Plan.

The table below summarizes the Company’s awards granted, forfeited, or vested under the 2016 Plan during the years ended December 31, 2024 and 2023:


	Restricted Stock
		Weighted Average
	Number of Shares	Grant Date Fair Value
Unvested shares at December 31, 2022	189,596	$	4.94
Granted	196,056		3.87
Vested	(157,483)		4.50
Forfeited	(5,333)		3.54
Unvested shares at December 31, 2023	222,836		3.74
Granted	212,857		3.86
Vested	(195,071)		4.39
Forfeited	(333)		2.56
Unvested shares at December 31, 2024	240,289	$	1.35

During the years ended December 31, 2024 and 2023, the Company granted an aggregate of 212,857 and 196,056, respectively, of restricted Common Shares under the Plan, including restricted Common Shares granted to the Company’s Chief Executive Officer (see Note 12). The fair value of each block of shares at the time of grant was approximately $0.8 million.

With respect to the restricted Common Shares granted during the year ended December 31, 2024, (i) 33,666 shares vested on May 9, 2024; (ii) 37,285 shares vested on January 1, 2025; (iii) 33,667 shares will vest on May 1, 2025, and 2026, respectively; and (iv) 37,286 shares will vest on January 1, 2026 and 2027, respectively.

Stock-based compensation for the years ended December 31, 2024 and 2023, was $0.9 million and $0.8 million, respectively. As of December 31, 2024, there was unrecognized stock-based compensation expense of $0.7 million. Additionally, during the years ended December 31, 2024 and 2023, the Company had 333 and 5,333, respectively, of unvested restricted Common Shares forfeited to the Company as a result of the ending of the relationship with former employees.

Employee Benefits

On April 16, 2018, the Board approved the adoption of the Sachem Capital Corp. 401(k) Profit Sharing Plan (the “401(k) Plan”). All employees who meet the participation criteria are eligible to participate in the 401(k) Plan. Under the terms of the 401(k) Plan, the Company is obligated to contribute 3% of a participant’s compensation to the 401(k) Plan on behalf of an employee-participant. For the years ended December 31, 2024, and 2023, the 401(k) Plan expense was $0.1 million and $0.2 million, respectively, and is included under Compensation and employee benefits in the Consolidated Statements of Operations.

Equity

12 Months Ended

Dec. 31, 2024

Equity

Equity

16. Equity

On August 24, 2022, the Company filed a prospectus supplement to its Form S-3 Registration Statement covering the sale of up to $75.0 million of its Common Shares and shares of its Series A Preferred Stock (as defined in Note 18 below) with an aggregate liquidation preference of up to $25.0 million in an “at-the market” offering, which terminated in February 2025 by its own terms (the “ATM Offering”). On June 17, 2024, the Company filed a new prospectus supplement (the “New Prospectus Supplement”) which modified the ATM Offering by reducing the amount of Common Shares the Company may offer and sell to up to an aggregate of $48.7 million, including the Common Shares the Company has already sold in the ATM Offering prior to the date of the New Prospectus Supplement. All the other terms of the ATM Offering remained the same.

During the year ended December 31, 2024, the Company sold 568,711 Common Shares with gross proceeds of $2.1 million and sold an aggregate of 276,825 shares of Series A Preferred Stock having an aggregate liquidation preference of $6.9 million, realizing gross proceeds of $5.8 million (representing a discount of 15.9% from the liquidation preference). The Company’s issuance costs for both Common Shares and Series A Preferred Stock shares sold during the year ended December 31, 2024 were $0.1 million. During the year ended December 31, 2023, the Company sold an aggregate of 126,923 shares of Series A Preferred Stock having an aggregate liquidation preference of $3.2 million, realizing gross proceeds of $2.6 million (representing a discount of 17.6% from the liquidation preference) and an aggregate of 5,546,891 Common Shares, realizing net proceeds of $20.5 million. At December 31, 2024, $49.9 million of Common Shares and shares of Series A Preferred Stock having a liquidation preference of $16.6 million were available for future sale under the ongoing “at-the market” offering. In February 2025, the ATM Offering terminated by its own terms.

In October 2022, the Board adopted a stock repurchase plan (the “Original Repurchase Plan”), pursuant to which the Company may repurchase up to an aggregate of $7.5 million of its Common Shares. Under the Original Repurchase Plan, share repurchases were made from time to time on the open market at prevailing market prices or in negotiated transactions off the market in accordance with applicable federal securities laws, including Rule 10b-18 and 10b5-1 of the Exchange Act. The Original Repurchase Plan expired on October 9, 2024.

Effective on October 10, 2024, the Board replaced the Original Repurchase Plan with a new stock repurchase plan (the “New Repurchase Plan”). Under the New Repurchase Plan, the Company may repurchase up to an aggregate of $5,802,959 (the amount remaining under the Original Purchase Plan) of Common Shares and share repurchases will be made from time to time on the open market at prevailing market prices in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act.

During the years ended December 31, 2024 and 2023, the Company repurchased an aggregate of 581,745 and 71,000 Common Shares at a total cost of $1.5 million and $0.2 million, respectively.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

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

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Limited Liability Company Investments

12 Months Ended

Dec. 31, 2024

Limited Liability Company Investments

Limited Liability Company Investments

17. Limited Liability Company Investments

The following table details the carrying value of each investment reflected on our consolidated balance sheets as of December 31, 2024:


	Ownership		Carrying
Investment	Percentage		Value
			(in thousands )
Shem Creek Capital Fund V LLC	7.6	%	$	1,143
Shem Creek Capital Fund VI LLC	9.9	%		4,290
Shem Creek Capital Fund VII LLC	16.2	%		3,598
Shem Creek Sachem V LLC	49.0	%		2,569
Shem Creek Sachem VI LLC	45.9	%		24,756
Shem Creek Sachem 100 LLC	100.0	%		12,586
Shem Creek Capital, LLC	20.0	%		2,500
Cordo CLT Investors LLC	7.2	%		2,500
Total			$	53,942

Shem Creek (“Shem”)

As of December 31, 2024, the Company had invested an aggregate of $51.4 million in seven limited liability companies (“LLC’s”) (all of which have elected to be taxed as partnerships). The Company’s interest in each of these entities is both “non-controlling” and lacks the ability for “significant influence” as considered under FASB ASC 810, 321 and 323. The Shem LLC’s are commercial real estate finance companies that provide first mortgage debt capital solutions to local and regional commercial multi-family real estate owners in the Northeastern United States. The Company has no management or voting rights in the operations of any of the Shem Creek LLC’s.

In September 2024, the Company acquired the seventh ownership interest, a 20% membership interest in Shem Creek Capital, LLC, the management company of all Shem Creek investment vehicles. At close, the Company paid $2.5 million in cash. The balance of the purchase price is due and payable on or before September 6, 2025. In February 2025, the Company paid the remaining $2.5 million in cash to complete the acquisition of the 20% membership interest. In addition, the Company has the right to acquire an additional 10% interest (increasing its stake to 30%) in two separate 5% options of $1.4 million and $1.5 million at any time prior to March 31, 2027. The Company has no management or voting rights of any significance in the operation of the entity, nor any board representation, but is allowed one of three investment committee members of Shem Creek Capital, LLC. The remaining two of three members of the investment committee is comprised of the two members who are also the sole manager of the Shem Creek Capital, LLC entity.

The Company accounts for the funds and the manager investments at the measurement alternative of at cost less impairment, adjusted for observable price changes, because the Company does not manage the fund or management entities in which it holds an interest. The Company has no control by contract or influence over operating and financial policies through member voting rights or deemed to have significant influence over the investments, even though FASB ASC 323-10-30-299-1 would presume such based on membership percentage owned levels being greater than 3 – 5%. The Company has assessed FASB ASC 321, 323 and 810 and has concluded that Predominant Evidence to the Contrary does exist in accordance with FASB ASC 323-10-15-10 based on full context and operations of all the individual LLC operating agreements. The Company’s withdrawal from each limited liability company may only be granted by the manager of Shem.

The Company’s investments can be categorized into three fund structures: fund investments, direct loan investments (co-invest vehicles) and the manager investment. The fund investments primarily include investments in two entities that invest in mortgage loans. The direct loan investments are through three entities whereby the Company directly invests in the participation of individual loans. Both the fund and direct loan structure primarily invest in mortgage loans to borrowers with a majority of the deals being leveraged by a bank. These loans are primarily two- to three- year collateralized mortgage loans, often with contractual extension options for the borrowers of an additional year. The Company receives quarterly distributions from the entities that are comprised of a preferred return, return of capital, and the incentive fee depending on each loan’s waterfall calculation, as defined by the loan agreements. The Company’s interests in the entities are not redeemable at any time, as its investment will be repaid as the underlying loans are repaid. The Company expects to be repaid on its current investments by December 31, 2027. Shem’s compensation includes senior financing fees, incentive fees, and management fees that are charged to each entity that it manages, including the seven entities in which the Company has an investment. The Company expects to receive quarterly distributions from the respective entities operating cash flows.

For the years ended December 31, 2024 and 2023, the Shem investments generated $5.1 million and $3.5 million, respectively, of income for the Company.

At December 31, 2024, the Company had unfunded commitments totaling $4.4 million in the Shem entities.

Cordo CLT Investors LLC

In September 2024, the Company, through its wholly owned subsidiary Urbane Capital, LLC, initially acquired a 21.6% interest in Cordo CLT Investors LLC for one time contribution of $2.5 million. As the remainder of committed common member equity is received by Cordo CLT Investors LLC, the Company’s membership interest will decline to an expected 7.2% of total, but as of December 31, 2024, the Company was 11.33% of total. This entity was formed for the sole purpose of developing a commercial multifamily property in Charlotte, North Carolina. The Company anticipates the project to be completed by the end of 2026. The Company also accounts for this member investment at FASB ASC 321 measurement alternative at cost, less impairment, because the Company does not manage the entity in which it holds an interest and has no contractual control, voting powers or significant influence over the entity’s operating and financial policies of any kind by contract of the operating agreement.

Series A Preferred Stock

12 Months Ended

Dec. 31, 2024

Series A Preferred Stock

Series A Preferred Stock

18. Series A Preferred Stock

The Company has designated 2,903,000 shares of its authorized preferred shares, par value $0.001 per share, as shares of Series A Preferred Stock (the “Series A Preferred Stock”) with the powers, designations, preferences and other rights as set forth in an Amended and Restated Certificate of Designation (the “Series A Designation Certificate”). The Series A Designation Certificate provides that the Company will pay quarterly cumulative dividends on the Series A Preferred Stock, in arrears, on the 30th day of each of March, June, September and December, and including, the date of original issuance of the Series A Preferred Stock until redeemed at 7.75% of the $25.00 per share liquidation preference per annum (equivalent to $1.9375 per annum per share). The Series A Preferred Stock is not redeemable before June 29, 2026, except upon the occurrence of a Change of Control (as defined in the Series A Designation Certificate). On or after June 29, 2026, the Company may, at its option, redeem any or all of the shares of the Series A Preferred Stock at $25.00 per share plus any accumulated and unpaid dividends to, but not including the redemption date. Upon the occurrence of a Change of Control, the Company may, at its option, redeem any or all of the shares of Series A Preferred Stock within 120 days after the first date on which such Change of Control occurred at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted into Common Shares in connection with a Change of Control by the holders of the Series A Preferred Stock. Upon the occurrence of a Change of Control, each holder of Series A Preferred Stock will have the right (subject to the Company’s election to redeem the Series A Preferred Stock in whole or in part, as described above, prior to the Change of Control Conversion Date as defined in the Series A Designation Certificate) to convert some or all of the Series A Preferred Stock held by such holder on the Change of Control Conversion Date into a number of the Common Shares determined by formula, in each case, on the terms and subject to the conditions described in the Series A Designation Certificate, including provisions for the receipt, under specified circumstances, of alternative consideration as described in the Series A Designation Certificate. Except under limited circumstances, holders of the Series A Preferred Stock generally do not have any voting rights. The Company has reserved 72,575,000 Common Shares for issuance upon conversion of the Series A Preferred Stock.

Subsequent Events

12 Months Ended

Dec. 31, 2024

Subsequent Events

Subsequent Events

19. Subsequent Events

The Company evaluated subsequent events from January 1, 2025 until the financial statements were issued.

On February 24, 2025, the board of directors authorized and the Company declared a dividend of $0.484375 per share on the Company’s 7.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred”) payable on March 31, 2025 to Series A Preferred shareholders of record on March 15, 2025. The payment represents the full amount of the dividend accruing from December 30, 2024 through and including March 29, 2025.

On March, 5, 2025, the Company’s board of directors authorized and declared a quarterly dividend of $0.05 per common share to be paid to shareholders of record as of the close of trading on the NYSE American on March 17, 2025. The dividend is payable on March 31, 2025.

On March 10, 2025, the Company’s Compensation Committee authorized (i) a grant of 420,168 restricted Common Shares to John L. Villano, which shares had a fair market value on the date of grant of approximately $0.5 million; and (ii) a one-time bonus grant of 20,000 restricted Common Shares to each of the Company’s non-employee directors, Arthur Goldberg, Brian Prinz, Leslie Bernhard and Jeffery Walraven. Each of the Company’s non-employee directors, with the except for Mr. Walraven, also had the option, at his or her election, to receive the fair market value equivalent of his or her grant in a lump sum cash payment of $23,800. An aggregate of 60,000 restricted Common Shares were granted to the Company’s non-employee directors, which shares had an aggregate fair market value on the date of grant of approximately $71,400. Ms. Bernhard elected to receive the lump sum cash payment.

The Company identified subsequent to the above March 10, 2025 action of the Company’s Compensation Committee regarding authorization of issuance of 420,168 share of restricted stock to John L. Villano under the effective 2016 Equity Compensation Plan that it had over authorized on the total issuance by 320,168 shares. The over issuance is a result of a specified limitation in the Plan that no more than 100,000 shares of restricted Common Shares may be made subject to awards to a single individual in a single plan year, subject to adjustments as provided. No identified adjustment provisions were deemed applicable. In result of this identification it was also determined that in calendar 2023 and 2024 there were additional similar over issuances of 30,890 and 11,857, respectively. In total there were 362,915 restricted shares which have been issued in excess of Plan limitations, all of which still remain unvested and restricted. No other plan years have identified any additional over issuances. In an immediate full and in excess of necessary remediation of this matter on March 25, 2025 John L. Villano voluntarily forfeited the 420,168 shares that were granted on March 10, 2025.

See the Needham Credit Facility subsequent event as disclosed in Note 8 – Line of Credit, Mortgage Payable, and Churchill Facility.

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (39,571)	$ 15,899

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

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

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	Risk Management and Strategy We maintain a cyber risk management program designed to identify, assess, manage, mitigate, and respond to cybersecurity threats. The underlying processes and controls of our program incorporate recognized best practices and standards for cybersecurity and information technology, including the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework (“CSF”). The program is subject to annual risk assessment by a third-party consultant to ensure compliance with the standards of the NIST CSF and to identify, quantify and categorize material cyber risks. In addition, with the assistance of the consultant, we have developed a risk mitigation plan to address cyber risks, and where necessary, remediate potential vulnerabilities. Under this program, we employ additional key practices including, but not limited to, maintenance of an information technology (“IT”) assets inventory, quarterly vulnerability testing, identity access management controls including restricted access of privileged accounts, physical security measures at our offices, maintenance of firewalls and anti-malware tools, ongoing cybersecurity user awareness training, industry-standard encryption protocols, and critical data backups. Our cybersecurity partners, including a technology consultant and other relevant third-party service providers, are a key part of our cybersecurity risk management strategy and infrastructure. We partner with industry recognized cybersecurity providers leveraging third-party technology and expertise and engage with these partners to maintain the performance and effectiveness of IT assets, data, and services. The cybersecurity partners provide services including, but not limited to, systems inventory management, vulnerability testing, user management, capacity monitoring, network protection, remote access management, data backups management, infrastructure maintenance, and cyber risk advisory, assessment and remediation. We also maintain a disaster recovery plan to help us quickly recover from an incident during a disruption and help mitigate the impact of certain cybersecurity risks.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	We maintain a cyber risk management program designed to identify, assess, manage, mitigate, and respond to cybersecurity threats. The underlying processes and controls of our program incorporate recognized best practices and standards for cybersecurity and information technology, including the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework (“CSF”). The program is subject to annual risk assessment by a third-party consultant to ensure compliance with the standards of the NIST CSF and to identify, quantify and categorize material cyber risks. In addition, with the assistance of the consultant, we have developed a risk mitigation plan to address cyber risks, and where necessary, remediate potential vulnerabilities. Under this program, we employ additional key practices including, but not limited to, maintenance of an information technology (“IT”) assets inventory, quarterly vulnerability testing, identity access management controls including restricted access of privileged accounts, physical security measures at our offices, maintenance of firewalls and anti-malware tools, ongoing cybersecurity user awareness training, industry-standard encryption protocols, and critical data backups. Our cybersecurity partners, including a technology consultant and other relevant third-party service providers, are a key part of our cybersecurity risk management strategy and infrastructure. We partner with industry recognized cybersecurity providers leveraging third-party technology and expertise and engage with these partners to maintain the performance and effectiveness of IT assets, data, and services. The cybersecurity partners provide services including, but not limited to, systems inventory management, vulnerability testing, user management, capacity monitoring, network protection, remote access management, data backups management, infrastructure maintenance, and cyber risk advisory, assessment and remediation. We also maintain a disaster recovery plan to help us quickly recover from an incident during a disruption and help mitigate the impact of certain cybersecurity risks.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	We are in the process of formalizing the Audit Committee’s responsibilities to oversee our cybersecurity risk exposure and the steps taken by management to monitor and mitigate cybersecurity risks. Once these responsibilities have been established, the cybersecurity stakeholders, including member(s) of management assigned with cybersecurity oversight responsibility and/or third-party consultants providing cyber risk advisory services will brief the Audit Committee on cyber vulnerabilities identified through the risk management process, the effectiveness of our cyber risk management program, the emerging threat landscape, and new cyber risks on at least an annual basis. This will include updates on our processes to prevent, detect, and mitigate cyber incidents. In addition, material cybersecurity risks and/or events, should they occur, will be reviewed by the Board, at least annually, as part of our corporate risk oversight processes.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	Audit Committee
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	We are in the process of formalizing the Audit Committee’s responsibilities to oversee our cybersecurity risk exposure and the steps taken by management to monitor and mitigate cybersecurity risks. Once these responsibilities have been established, the cybersecurity stakeholders, including member(s) of management assigned with cybersecurity oversight responsibility and/or third-party consultants providing cyber risk advisory services will brief the Audit Committee on cyber vulnerabilities identified through the risk management process, the effectiveness of our cyber risk management program, the emerging threat landscape, and new cyber risks on at least an annual basis. This will include updates on our processes to prevent, detect, and mitigate cyber incidents. In addition, material cybersecurity risks and/or events, should they occur, will be reviewed by the Board, at least annually, as part of our corporate risk oversight processes.
Cybersecurity Risk Role of Management [Text Block]	Our management team, including the IT Manager, in conjunction with third-party IT and cybersecurity service providers is responsible for oversight and administration of our cyber risk management program. Our management team has prior experience selecting, deploying, and overseeing cybersecurity technologies, initiatives, and processes directly or via selection of strategic third-party partners, and relies on threat intelligence as well as other information obtained from governmental, public, or private sources, including external consultants engaged by us for strategic cyber risk management, advisory and decision making.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	management team
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Our management team has prior experience selecting, deploying, and overseeing cybersecurity technologies, initiatives, and processes directly or via selection of strategic third-party partners, and relies on threat intelligence as well as other information obtained from governmental, public, or private sources, including external consultants engaged by us for strategic cyber risk management, advisory and decision making.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	Once these responsibilities have been established, the cybersecurity stakeholders, including member(s) of management assigned with cybersecurity oversight responsibility and/or third-party consultants providing cyber risk advisory services will brief the Audit Committee on cyber vulnerabilities identified through the risk management process, the effectiveness of our cyber risk management program, the emerging threat landscape, and new cyber risks on at least an annual basis. This will include updates on our processes to prevent, detect, and mitigate cyber incidents. In addition, material cybersecurity risks and/or events, should they occur, will be reviewed by the Board, at least annually, as part of our corporate risk oversight processes.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2024

Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of the Company include the accounts of all subsidiaries in which the Company has control over significant operating, financial and investing decisions of the entity. As of December 31, 2024, the accounts and activities of these subsidiaries were not material to warrant separate disclosure or segment reporting. As a result, the Company has only one reportable segment for financial reporting purposes. All intercompany accounts and transactions have been eliminated in consolidation.

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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) various assumptions that consider prior reporting results, (b) the Company’s projections regarding future operations and (c) general financial market and local and general economic conditions. Actual amounts could differ from those estimates. Significant estimates include the provisions for current expected credit losses, loans held for sale at fair value, and real estate owned.

Concentration of Credit Risks

Concentration of Credit Risks

Financial instruments that may subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, loans and related receivables. Concentration of credit risk relating to loans and related receivables are managed by the Company through robust portfolio monitoring and performing due diligence prior to origination or acquisition, when and where available and appropriate.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all demand deposits, cashier’s checks, money market accounts and certificates of deposit with an original maturity of three months or less to be cash equivalents.

Investment Securities (at fair value)

Investment Securities (at fair value)

Debt investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive (loss) income. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, management evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, management employs a systematic methodology that considers available quantitative and qualitative evidence. In addition, management may consider specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company plans to sell the security or it is more likely than not that it will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in net income and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future losses and/or impairments.

Marketable equity investments with readily determinable fair values are measured at fair value and are classified as trading securities with changes in value recorded in net income.

Investment in Limited Liability Companies ("LLCs")

Investment in Limited Liability Companies (“LLCs”)

The Company accounts for its investments in limited liability companies based on the level of ownership, control, and influence in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 323 (Investments – Equity Method and Joint Ventures) and FASB ASC 810 (Consolidation). Investments in LLCs are classified into the following categories based on the Company’s level of influence and control:

1.Fair Value Method (FASB ASC 321) – Passive Investments (Less than 20% Ownership, No Significant Influence)

o

Investments in LLCs where the Company does not exercise significant influence are accounted for under FASB ASC 321 (Investments – Equity Securities) and recorded at fair value, with changes in fair value recognized in earnings.

o

If fair value is not readily determinable, the Company applies the measurement alternative, recording the investment at cost less impairment, adjusted for observable price changes.

2.Equity Method (FASB ASC 323) – Significant Influence (20% – 50% Ownership)

o

The Company applies the equity method of accounting for investments where it has significant influence over the operating and financial policies of the LLC.

o

Under the equity method, the Company recognizes its proportionate share of the LLC’s net income or loss in earnings and adjusts the carrying amount of the investment accordingly.

o

Distributions received from equity method investments are recorded as a reduction of the investment unless they represent a return on investment, in which case they are recognized as income.

o

The investment is assessed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable.

3.Consolidation (FASB ASC 810) – Variable Interest Entities (“VIEs”) or Controlling Interest

o

Voting Interest Model: The Company holds greater than 50% of the voting interests and has the power to direct the significant activities of the LLC.

o

Variable Interest Entity (VIE) Model: If the LLC qualifies as a Variable Interest Entity, the Company consolidates the LLC when it is deemed to be the primary beneficiary of the VIE. In accordance with FASB ASC 810, the Company evaluates whether:

1.

The LLC is a VIE (i.e., lacks sufficient equity to finance its operations without additional support or the equity holders do not have the power to direct significant activities); and

2.

The Company has both: The power to direct the activities of the VIE that most significantly affect its economic performance, and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant.

When both conditions are met, the Company consolidates the VIE in its financial statements, including the entity’s assets, liabilities, and operations. Noncontrolling interests in consolidated LLCs, if any, are presented separately within the financial statements. The Company reassesses its conclusions about VIE status and primary beneficiary determination on an ongoing basis, particularly when events occur that may change the underlying structure or governance of the investee.

For investments accounted for under the equity method or the measurement alternative cost method, the Company evaluates whether indicators of impairment exist. If an investment is determined to be other-than-temporarily impaired, the carrying value is written down to its estimated fair value, with the impairment loss recognized in earnings.

Loans held for investment

Loans held for investment

Loans that are originated and serviced by the Company, that management has the intent and ability to hold for the foreseeable future are reporting at their outstanding balances, net of an allowance for credit losses and unamortized deferred fees. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to fee income over the contractual lives of the loans using the interest method which reflects a constant yield. Interest income on loans is accrued based on the unpaid principal balance outstanding and the contractual terms of the loan agreements.

Loans held for sale

Loans held for sale

Loans are classified as held for sale if there is an intent to sell in the near-term. These loans are recorded at the lower of amortized cost or fair value. If the fair value of a loan is determined to be less than its amortized cost, a non-recurring fair value adjustment will be recorded through a valuation allowance. When a loan is transferred into the held for sale category, any previously recorded allowance for credit losses is reversed in the provision for credit losses related to loans and the loan is recorded at its amortized cost basis. If the amortized cost basis exceeds the loan’s fair value at the date of transfer, a valuation allowance equal to the difference between amortized cost basis and fair value is recorded.

Non-accrual loans

Non-accrual loans

A loan is generally placed on non-accrual status when it is probable that principal and interest will not be collected under the original contractual terms. At that time, interest income is no longer accrued. Non-accrual loans consist of loans for which principal or interest has been delinquent for 90 days or more. Interest income is subsequently recognized only to the extent it is received in cash or until the loan qualifies for return to accrual status. Loans are restored to accrual status when contractually current and the collection of future payments is reasonably assured. In certain instances, the Company may make exceptions to placing a loan on non-accrual status if the loan is in the process of modification.

Loan modifications made to borrowers experiencing financial difficulty.

Loan modifications made to borrowers experiencing financial difficulty.

In situations where economic or legal circumstances may cause a borrower to experience significant financial difficulties, the Company may grant concessions for a period of time to the borrower that it would not otherwise consider. These modified terms may include interest rate reductions, principal forgiveness, term extensions, and other-than-insignificant payment delay intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company monitors the performance of all loans, including loans modified to borrowers experiencing financial difficulty and considers loans that are 90 days past due to be in payment default.

Transfer of Financial Assets

Transfer of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. Transfers of agreements that meet the sale criteria under FASB ASC 860 (Transfers and Servicing) are derecognized from the Consolidated Balance Sheets at the time of transfer. If the transfer of loans does not meet the sale criteria or participating interest criteria under FASB ASC 860, the transfer is accounted for as a secured borrowing and the loan is not de-recognized and a participating liability is recorded in the Consolidated Balance Sheets.

Allowance for Credit Losses

Allowance for Credit Losses

The Company adopted the current expected credit loss (“CECL”) standard effective January 1, 2023 in accordance with Accounting Standard Update (“ASU”) No. 2016-13. The initial CECL allowance adjustment of $2.5 million was recorded effective January 1, 2023 as a cumulative-effect of change in accounting principle through a direct charge to cumulative net earnings on the consolidated statements of shareholders’ equity. Subsequent changes to the CECL allowance will be recognized in the consolidated statements of operations in “Provision for credit losses related to loans held for investment”.

The Company records an Allowance for credit losses on the consolidated balance sheets with respect to its loan portfolio, including unfunded construction commitments, on a collective basis by assets with similar risk characteristics. This methodology, known as the “estimated expected lifetime losses,” replaces the “probable incurred loss impairment” methodology. In addition, interest and fees receivable and amounts included in due from borrowers, other than reimbursements, which include origination, modification and other fees receivable are also analyzed for credit losses in accordance with CECL standard, as they represent a financial asset that is subject to credit risk. As allowed under the CECL standard used by the Company, as a practical expedient, the fair value of the collateral at the reporting date is compared to the net carrying amount of the loan when determining the allowance for credit losses for loans in pending/pre-foreclosure status, as defined. Fair value of collateral is reduced by estimated cost to sell if the collateral is expected to be sold. The aggregate gross outstanding principal of loans in pending/pre-foreclosure as of December 31, 2024, and December 31, 2023, was $52.1 million and $63.7 million, respectively. As of December 31, 2024, and December 31, 2023, the Company had directly reserved against these loans in foreclosure in the amounts of $6.1 million and $5.1 million, respectively. Further, the Company had direct reserves against non-performing loans held for investment that experienced declines in fair value of $7.3 million and $0, respectively. As of December 31, 2024, the aggregate outstanding principal amount of non-performing loans held for investment with direct allowances was $57.8 million. Such allowances are presented net in “Loans held for investment, net” and “Loans held for sale, net” on the consolidated balance sheets included in the accompanying consolidated financial statements based on their respective classification.

The CECL standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a vintage loss-rate method for estimating current expected credit losses. The vintage loss rate method involves applying a vintage loss rate to a pool of loans with similar risk characteristics to estimate the expected credit losses on that pool of loans. In determining the CECL allowance, the Company considers various factors including (1) historical loss experience and unrealized forecasted losses in its portfolio, (2) loan specific losses for loans deemed collateral dependent based on excess amortized cost over the fair value of the underlying collateral, and (3) its current and future view of the macroeconomic environment.

The Company’s estimate of expected credit losses includes a review of charge-off experience factors, contractual delinquency, historical collection rates, the value of underlying collateral and other information to make the necessary judgments as to allowance for credit losses expected in the portfolio as of the reporting date. While management utilizes the best information available to make its evaluations, changes in macroeconomic conditions, interest rate environments, or both, may significantly impact the assumptions and inputs used in determining the allowance for credit losses. The Company’s charge-off policy is determined by a review of each delinquent loan. The Company has an accounting policy to not place loans on nonaccrual status unless they are more than 90 days delinquent. Accrual of interest income is generally resumed when the delinquent contractual principal and interest is paid in full or when a portion of the delinquent payments are made, and the ongoing required contractual payments have been made for an appropriate period.

In the year ended December 31, 2024, the Company updated its methodology for estimating the CECL factors on its portfolio of financial assets related to loans. This update reflects the Company incorporating its current unrealized losses on individually evaluated loans into its historical loss data, as this change is believed to provide sufficient coverage to forecast estimated expected lifetime losses.

Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. The Allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loans based on evaluating historical credit loss experience and to make adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. The “Allowance for credit losses” related to the principal outstanding is presented within “Loans held for investment, net” and for unfunded commitments is within accounts payable and accrued liabilities in the Company’s consolidated balance sheets. The “Allowance for credit losses” related to the late payment fees are presented in “Interest and fees receivable, net”, and “Due from borrowers, net” in the Company’s consolidated balance sheets. Lastly, the allowance related to unfunded commitments for construction loans is presented in “Accounts payable and accrued liabilities” on the Company’s consolidated balance sheets.

See Note 4 – Loans and Allowance for Credit Losses for further details.

Fair Value Measurements

Fair Value Measurements

The framework for measuring fair value provides a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

Level 1Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company can access.

Level 2Inputs to the valuation methodology include:

●

quoted prices for similar assets or liabilities in active markets;

●

quoted prices for identical or similar assets or liabilities in inactive markets;

●

inputs other than quoted prices that are observable for the asset or liability; and

●

inputs that are derived principally from or corroborated by observable market data by correlation to other means.

If the asset or liability has a specified (i.e., contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Property and Equipment

Land and building acquired in 2021 to serve as the Company’s corporate headquarters is stated at cost. Renovation of the building was completed in the first quarter of 2023 and the Company relocated its operations to the building in March 2023. The land is carried at cost. The building is stated at cost less accumulated depreciation. The building is being depreciated using the straight – line method over its estimated useful life of 40 years. The building was placed in service during the three months ended March 31, 2023. Further, furniture and fixtures, computer hardware and software, and vehicles are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Furniture and fixtures are depreciated using an estimated useful life of three to five years. Computer hardware and software are depreciated using an estimated useful life of two to three years. Vehicles are depreciated using an estimated useful life of five years.

The following tables represent the Company’s property and equipment, net:


Year ended December 31, 2024	Cost		Accumulated Depreciation		Property and Equipment, Net

	(in thousands)
Building	$	2,557	$	(110)	$	2,447
Land		255		—		255
Furniture and fixtures		308		(117)		191
Computer hardware and software		295		(246)		49
Vehicles		435		(155)		280
Total property and equipment, net	$	3,850	$	(628)	$	3,222


Year ended December 31, 2023	Cost		Accumulated Depreciation		Property and Equipment, Net

	(in thousands)
Building	$	2,541	$	(47)	$	2,494
Land		255		—		255
Furniture and fixtures		281		(51)		230
Computer hardware and software		276		(213)		63
Vehicles		429		(98)		331
Total property and equipment, net	$	3,782	$	(409)	$	3,373

Investment in Rental Real Estate

Investment in Rental Real Estate

Real estate is carried at cost, net of accumulated depreciation and amortization. Betterments, major renewals and certain costs directly related to the improvement and leasing of real estate are capitalized. Maintenance and repairs are expensed as incurred. For redevelopment of existing operating properties, the net book value of the existing property under redevelopment plus the cost for the construction and improvements incurred in connection with the redevelopment, including interest and debt expense, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the redeveloped property when complete. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of the redeveloped property, the excess is charged to expense. Depreciation is recognized on a straight-line basis over the estimated useful lives of these assets which range from 7 to 40 years. Tenant allowances are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets.

Upon the acquisition of real estate, the Company assesses whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Acquisitions of real estate generally will not meet the definition of a business because substantially all the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets).

The Company allocates the purchase price of real estate to land and building (inclusive of site and tenant improvements) and, if determined to be material, intangible assets, such as the value of above- and below-market leases and deferred leasing costs associated with the in-place leases.

The allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed involves subjectivity as the allocations are based on an analysis of the respective fair values. In determining the fair value of the real estate acquired, the Company utilized a third-party valuation which primarily utilizes cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as a sales comparison approach, which utilizes comparable sales, listings and sales contracts. The Company assesses the fair value of the leases acquired based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. The determined and allocated fair values to the real estate acquired will affect the amount of depreciation and amortization we record over the respective estimated useful lives or term of the lease.

On June 23, 2023, the Company entered into a purchase and sale contract (the “Westport Purchase Agreement”) to acquire a commercial office building in Westport, CT (the “Westport Asset”) for $10.6 million. The transaction was completed on August 31, 2023. In connection with this transaction, which was accounted for as an asset acquisition, the Company allocated the purchase price and acquisition-related costs to the tangible and intangible assets acquired based on fair value. In addition, the Company recorded a lease liability stemming from below-market rental rates. Total consideration, including capitalized acquisition-related costs, was $10.7 million.

See Note 5 – Investment in Rental Real Estate, net for further details surrounding the above acquisition as of December 31, 2024.

Real Estate Owned ("REO")

Real Estate Owned (“REO”)

REO acquired through foreclosure is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. After an REO acquisition, events or circumstances may occur that result in a material and sustained decrease in the cash flows generated from the property or other market indicators including listing data may signal a decline in the liquidation value. REO is evaluated for recoverability when impairment indicators are identified. Any impairment losses or recoveries are included in the consolidated statements of operations.

Impairment of Long-Lived Assets

The Company continually monitors events or changes in circumstances that could indicate the carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the undiscounted cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.

Goodwill

Goodwill

Goodwill is tested for impairment annually as of the balance sheet date or more frequently if events or changes in circumstances indicate potential impairment. Goodwill at December 31, 2024 represents the excess of the consideration paid over the fair value of net assets acquired from Urbane New Haven, LLC in October 2022.

In testing goodwill for impairment, the Company adheres to FASB ASC 350 (Intangibles—Goodwill and Other), which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, or the Company chooses not to perform the qualitative assessment, then it compares the fair value of that reporting unit with its carrying value, including goodwill.

As of December 31, 2024 and December 31, 2023, goodwill was $0.4 million, respectively, which is presented in Other assets on the Company’s consolidated balance sheets. As of and during the years ended December 31, 2024, and 2023, there was no impairment to goodwill.

Deferred Financing Costs

Costs incurred in connection with the Company’s revolving credit facilities, described in Note 8 – Lines of Credit, Mortgage Payable Churchill Facility – are amortized over the term of the applicable facility using the straight-line method, which approximates the effective interest.

Costs incurred by the Company in connection with the issuance of unsecured, unsubordinated notes, described in Note 9 – Unsecured Notes Payable – are being amortized over the term of the respective unsecured, unsubordinated notes using the effective interest method.

Revenue Recognition

Interest income from the Company’s loan portfolio is earned over the loan period and is calculated using the simple interest method on principal amounts outstanding. Generally, the Company’s loans provide for interest to be paid monthly in arrears. The Company, generally, does not accrue interest income on loans that are more than 90 days past due or interest charged at default rates.

Origination, modification, extension, and construction servicing fee revenue, generally 1% – 3% of either the original loan principal or the modified loan balance, is collected at loan funding and is recognized ratably over the contractual life of the loan in accordance with FASB ASC 310 (Receivables).

Interest Reserves

Interest Reserves

The Company utilizes interest reserves on certain loans which are applied to future interest payments. Such reserves are established at the time of loan origination. The interest reserve is recorded as a liability as it represents unearned interest revenue. The interest reserve is relieved when the interest on the loan is earned, and interest income is recorded in the period when the interest is earned in accordance with the credit agreement. The interest payment is deducted from the interest reserve deposit balance on the date when the interest payment is due. The decision to establish an interest reserve is made during the underwriting process and considers the creditworthiness and expertise of the borrower, the feasibility of the project, and the debt coverage provided by the real estate and other pledged collateral. It is the Company’s policy to recognize income for this interest component as long as the borrower is progressing as originally projected and if there has been no deterioration in the financial condition of the borrower or the underlying project. The Company’s standard accounting policies for interest income recognition are applied to all loans, including those with interest reserves.

Expenses

Expenses

Interest expense, in accordance with the Company’s financing agreements, is recorded on an accrual basis. General and administrative expenses, including professional fees, are expensed as incurred.

Income Taxes

The Company believes it qualifies as a real estate investment trust (“REIT”) for federal income tax purposes and operates accordingly. It made the election to be taxed as a REIT on its 2017 Federal income tax return. The Company’s qualification as a REIT depends on its ability to meet on a continuing basis, through actual investment and operating results, various complex requirements under the Internal Revenue Code of 1986, as amended (the “Code”), relating to, among other things, the sources of its income, the composition and values of its assets, its compliance with the distribution requirements applicable to REITs and the diversity of ownership of its outstanding capital stock. So long as it qualifies as a REIT, the Company, generally, will not be subject to U.S. federal income tax on its taxable income distributed to its shareholders. However, if it fails to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal income tax at regular corporate rates and may also be subject to various penalties and may be precluded from re-electing REIT status for the four taxable years following the year during in which it lost its REIT qualification. Other than taxes incurred by the Company’s taxable REIT subsidiary (“TRS”), the Company does not expect to incur any corporate federal income tax liability outside of the TRS, as it believes it has maintained its qualification as a REIT.

The Company has elected, and may elect in the future, to treat certain of its existing or newly created corporate subsidiaries as TRSs. In general, a TRS may hold assets that the Company cannot hold directly and generally may engage in any real estate or non-real estate related business. The TRSs generate income, resulting in federal and state income tax liability for these entities. During the year ended December 31, 2024, the Company’s TRSs recognized provisions for federal and state income tax of $0.2 million, which is represented in Other expenses on the Company’s consolidated statements of operations. During the year ended December 31, 2023, there were no recognized provisions for federal income tax nor state tax.

The income tax provision for the Company differs from the amount computed from applying the statutory federal income tax rate to income before income taxes due to non-taxable REIT income and other permanent differences including the non-deductibility of acquisition costs of business combinations for federal income tax reporting.

FASB ASC Sub-Topic 740-10 “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and disclosure required. Under this standard, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. The Company has determined that there are no uncertain tax positions requiring accrual or disclosure in the accompanying consolidated financial statements as of December 31, 2024 and 2023.

(Losses) Earnings Per Share

(Losses) Earnings Per Share

Basic and diluted (losses) earnings per share are calculated in accordance with FASB ASC 260 (Earnings Per Share). Under FASB ASC 260, basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares, $.001 par value per share, (“Common Shares”) outstanding for the period. The computation of diluted (losses) earnings per share is similar to basic (losses) earnings per share, except that the denominator is increased to include the potential dilution from our unvested restricted stock awards, that contain non-forfeitable rights to dividends so therefore deemed to participating, for Common Shares using the treasury stock method. The numerator in calculating both basic and diluted (losses) earnings per common share for each period is the reported net (loss) income.

For the year ended December 31, 2024, the Company had basic and diluted weighted average shares of 47,413,012 outstanding, resulting in basic and diluted loss per share of $0.93. As the Company incurred a net loss attributable to common shareholders for the year ended December 31, 2024 all restricted shares would be deemed antidilutive. For the year ended December 31, 2023, the Company had basic and diluted weighted average shares of 44,244,988 outstanding, resulting in basic and diluted earnings per share of $0.27. While the Company had net income attributable to common shareholders for the year ended December 31, 2023, the Company did not adjust the dilutive share calculation based on even if the Company assumed all 222,836 shares of unvested restricted stock at December 31, 2023 were deemed dilutive under the treasury method, the resulting diluted earnings per share would remain unchanged at $0.27.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (FASB ASC 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provides new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 applies retrospectively to all prior periods presented. This update did not have a material impact on the Company’s consolidated financial statements. See Note 1 – The Company for further information.

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income (FASB ASC 220-40): Expense Disaggregation Disclosures” (“ASU 2024-03”). ASU 2024-03 requires additional disclosure in the notes to the financial statements of specified information about certain costs and expenses. The ASU is effective in reporting periods beginning after December 15, 2026, and interim periods within annual periods beginning December 15, 2027, on a prospective or retrospective basis. Early adoption is permitted, and the Company is currently assessing the impact upon adoption of this standard on the consolidated financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted, would have a material effect on the Company’s consolidated financial statements.

Reclassifications

Reclassifications

Certain amounts included in the Company’s December 31, 2023 consolidated financial statements have been reclassified to conform to the December 31, 2024 presentation. These reclassifications had no effect on the year ended December 31, 2023 net income.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Significant Accounting Policies

Schedule of property and equipment, net


Year ended December 31, 2024	Cost		Accumulated Depreciation		Property and Equipment, Net

	(in thousands)
Building	$	2,557	$	(110)	$	2,447
Land		255		—		255
Furniture and fixtures		308		(117)		191
Computer hardware and software		295		(246)		49
Vehicles		435		(155)		280
Total property and equipment, net	$	3,850	$	(628)	$	3,222


Year ended December 31, 2023	Cost		Accumulated Depreciation		Property and Equipment, Net

	(in thousands)
Building	$	2,541	$	(47)	$	2,494
Land		255		—		255
Furniture and fixtures		281		(51)		230
Computer hardware and software		276		(213)		63
Vehicles		429		(98)		331
Total property and equipment, net	$	3,782	$	(409)	$	3,373

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Measurement

Schedule of company's assets at fair value


	December 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Total

Stocks and ETF’s	$	1,517	$	—	$	—	$	1,517
Mutual funds		—		—		—		—
Debt securities		—		—		—		—
Preferred/Fixed rate cap securities		—		—		—		—
Loans held for sale, net		—		—		10,970		10,970


	December 31, 2023
(in thousands)	Level 1		Level 2			Level 3	Total
Stocks and ETF’s	$	1,755	$	—	$	—	$	1,755
Mutual funds		16,237		—		—		16,237
Debt securities		18,945		—		—		18,945
Preferred/Fixed rate cap securities		—		839		—		839
Loans held for sale, net		—		—		—		—

Schedule of company's assets illustrates financial instruments measured at fair value on a nonrecurring basis


	December 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Total

Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	80,757	$	80,757
Real estate owned, net		—		—		18,574		18,574


	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total

Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	21,597	$	21,597
Real estate owned, net		—		—		3,462		3,462

Schedule of company's assets at fair value of financial instruments


	Carrying Amount				Fair Value Measurement
(in thousands)	2024		2023		2024		2023


Level 1
Cash and cash equivalents	$	18,066	$	12,598	$	18,066	$	12,598
Notes payable (listed) – fixed rate debt		231,241		289,482		194,810		260,249
Level 2
Lines of credit and repurchase agreements – variable rate debt		73,708		88,253		73,708		88,253
Level 3
Loans held for investment, net		356,571		487,065		356,571		487,065
Loans held for sale, net		10,970		—		10,970		—
Interest and fees receivable and due from borrowers		8,918		14,072		8,918		14,072
Investments in limited liability companies		53,942		43,036		53,942		43,036
Advances from borrowers		4,047		10,998		4,047		10,998
Mortgage payable		1,002		1,081		1,002		1,081

Schedule of company's available-for-sale (AFS) securities and other comprehensive income (OCI)


	Year Ended
	December 31,
	2024		2023

	(in thousands)
OCI from AFS debt securities:
Unrealized gain (losses) on debt securities at beginning of period	$	316	$	(562)
Unrealized holding gains on AFS securities		—		69
Reclassification adjustment for gains / losses realized in net (loss) income		(316)		—
Reclassification of losses from unrealized to provision for credit losses		—		809
Change in OCI from AFS debt securities		(316)		878
Balance at end of period	$	—	$	316

Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2024

Mortgages receivable.

Schedule of the company's loan portfolio by the past due status


	Loans held for investment
(in thousands)	Current		30-59 days past due		60-89 days past due		Greater than 90 days		Total
As of December 31, 2024	$	223,513	$	49,460	$	16,936	$	87,082	$	376,991
As of December 31, 2023	$	332,212	$	78,577	$	3,855	$	84,591	$	499,235

Schedule of allowance for credit losses

The below table represents the financial statement line items that are impacted by the Allowance for Credit Losses for the year ended December 31, 2024:


	Balance as of		Provision for credit				Balance as of
	December 31, 2023		losses related to loans		Charge-offs		December 31, 2024

	(in thousands)
Loans	$	7,523	$	22,405	$	(11,458)	$	18,470
Interest and fees receivable		902		2,231		—		3,133
Due from borrower		352		1,877		(1,094)		1,135
Unfunded commitments		509		415		—		924
Total Allowance for credit losses	$	9,286	$	26,928	$	(12,552)	$	23,662

The below table represents the financial statement line items that are impacted by the CECL allowance:


			Allowance for
			credit losses on
	Adoption as		loans – pre-		Provision for credit				Balance as of
	of January 1, 2023		adoption		losses related to loans		Charge-offs		December 31, 2023

	(in thousands)
Loans	$	1,921	$	105	$	5,497	$	—	$	7,523
Interest receivable		26		782		94		—		902
Due from borrower		21		338		10		(17)		352
Unfunded commitments		522		—		(13)		—		509
Total CECL allowance	$	2,490	$	1,225	$	5,588	$	(17)	$	9,286

Schedule of maturities of mortgage receivable


	2024		2023		2022		2021		2020		Prior		Total
(in thousands)
Current period charge-offs	$	—	$	—	$	5,550	$	5,897	$	11	$	—	$	11,458
Total	$	—	$	—	$	5,550	$	5,897	$	11	$	—	$	11,458

Schedule of summarizes the activity in the loans held for investment allowance for credit losses


	Allowance for credit losses						Allowance for credit losses
	as of		Provision for credit losses				as of
	December 31,		related to				December 31,
(in thousands)	2023		loans		Charge-offs		2024
Geographical Location
New England	$	5,764	$	13,859	$	(6,779)	$	12,844
Mid-Atlantic		1,324		533		—		1,857
South		435		6,046		(4,679)		1,802
West		—		1,967		—		1,967
Total	$	7,523	$	22,405	$	(11,458)	$	18,470


									Allowance for credit losses
	Allowance for credit losses				Provision for credit losses				as of
	on loans-		Adoption of ASU		related to				December 31,
(in thousands)	re-adoption		2016-13		loans held for investment		Charge-offs		2023
Geographical Location
New England	$	105	$	1,302	$	4,357	$	—	$	5,764
West		—		7		(7)		—		—
South		—		402		33		—		435
Mid-Atlantic		—		210		1,114		—		1,324
Total	$	105	$	1,921	$	5,497	$	—	$	7,523


		December 31, 2024				December 31, 2023
(in thousands)	Carrying Value		% of Portfolio			Carrying Value		% of Portfolio
Geographical Location
Loans held for investment:
New England	$	179,421		47.6	%	$	232,437	46.6	%
Mid-Atlantic		42,304		11.2	%		4,101	0.8	%
South		151,165		40.1	%		163,409	32.7	%
West		4,101		1.1	%		99,288	19.9	%
Total		376,991		100.0	%		499,235	100.0	%

Schedule of allocate the carrying value of the Company's loan portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated


	December 31, 2024
	Carrying
FICO Score ⁽²⁾(in thousands)	Value		2024		2023		2022	2021		2020		Prior
Loans held for investment:
Under 500	$	140	$	140	$	—	—	$	—	$	—	$	—
501-550		2,860		—		—	—		1,060		—		1,800
551-600		7,094		1,222		290	2,170		1,816		636		960
601-650		28,779		8,432		3,347	1,798		7,411		6,149		1,642
651-700		35,711		4,250		7,177	10,302		12,079		660		1,243
701-750		159,575		6,275		40,459	11,982		97,980		1,023		1,856
751-800		124,599		26,465		32,016	36,280		28,427		1,411		—
801-850		18,233		—		415	17,818		—		—		—
Total		376,991	$	46,784	$	83,704	80,350	$	148,773	$	9,879	$	7,501

(1)Represents the year of origination or amendment where the loan was subject to a full re-underwriting.

(2)The FICO Scores are calculated at the inception of the loan and are updated if the loan is modified or on an as needed basis.


	December 31, 2023			Year Originated⁽¹⁾
	Carrying
FICO Score ⁽²⁾ (in thousands)	Value		2023		2022		2021		2020		2019		Prior
Under 500	$	1,764	$	216	$	—	$	—	$	—	$	—	$	1,548
501-550		6,555		2,331		1,440		1,864		—	$	362		558
551-600		33,723		15,019		9,839		6,854		1,127	$	337		547
601-650		103,601		16,053		26,981		52,073		3,988	$	4,187		319
651-700		97,284		17,862		40,318		30,203		3,662	$	3,015		2,224
701-750		167,977		19,935		51,276		83,946		7,411	$	2,901		2,508
751-800		64,313		14,461		20,806		27,027		592	$	689		738
801-850		24,018		865		23,096		—		—	$	—		57
Total		499,235	$	86,742	$	173,756	$	201,967	$	16,780	$	11,491	$	8,499

(1)Represents the year of origination or amendment where the loan was subject to a full re-underwriting.

(2)The FICO Scores are calculated at the inception of a loan and are updated if the loan is modified or on an as needed basis.

Schedule of loan modifications made to borrowers experiencing financial difficulty


	Year Ended December 31, 2024
			% of Total
			Carrying Value of
(in thousands)	Carrying Value		Loans held for investment, net		Financial Effect
Loans modified during the period ended
Term extension	$	108,045	30.1	%	A weighted average of 11.5 months were added to the life of the loans
Principal modification, with no term extension	$	12,173	3.4	%	Unpaid interest/taxes/charges added to principal balance


	Year Ended December 31, 2024
(in thousands)	Current		90-119 days past due		120+ days past due		Total
Loans modified during the period ended
Term extension	$	61,145	$	250	$	46,345	$	108,045
Principal modification, with no term extension	$	12,173	$	—	$	—	$	12,173


	Year Ended December 31, 2023
			% of Total
			Carrying Value of
(in thousands)	Carrying Value		Loans held for investment, net		Financial Effect
Loans modified during the period ended
Term extension	$	77,138	15.7	%	A weighted average of 16.7 months were added to the life of the loans
Principal modification, with no term extension	$	20,342	4.1	%	Unpaid interest/taxes/charges added to principal balance


	Year Ended December 31, 2023
(in thousands)	Current		90-119 days past due		120+ days past due		Total
Loans modified during the period ended
Term extension	$	73,037	$	—	$	4,101	$	77,138
Principal modification, with no term extension	$	18,777	$	1,565	$	—	$	20,342

Investment in Rental Real Estate, net (Tables)

12 Months Ended

Dec. 31, 2024

Investment in Rental Real Estate, net

Schedule of investment in rental real estate


					Investment in Rental
Year Ending December 31, 2024	Cost		Accumulated Depreciation		Real Estate, Net

	(in thousands)
Land	$	4,557	$	—	$	4,557
Building		4,936		(154)		4,782
Site improvements		359		(30)		329
Tenant improvements		1,223		—		1,223
Construction in progress		3,141		—		3,141
Total	$	14,216	$	(184)	$	14,032


					Investment in Rental
Year Ending December 31, 2023	Cost		Accumulated Depreciation		Real Estate, Net

	(in thousands)
Land	$	3,957	$	—	$	3,957
Building		4,936		(31)		4,905
Site improvements		359		(6)		353
Tenant improvements		1,183		—		1,183
Construction in progress		157		—		157
Total	$	10,591	$	(37)	$	10,554

Schedule of estimated annual amortization of acquired below-market leases


Years Ending December 31,	Amount
	(in thousands)
2025	$	66
2026		66
2027		66
2028		66
2029		66
Thereafter		335
Total	$	665

Schedule of estimated annual amortization of acquired in-place lease intangible


Years Ending December 31,	Amount
	(in thousands)
2025	$	57
2026		57
2027		57
2028		57
2029		57
Thereafter		283
Total	$	568

Schedule of estimated annual amortization of deferred leasing costs


Years Ending December 31,	Amount
	(in thousands)
2025	$	39
2026		39
2027		39
2028		39
2029		39
Thereafter		192
Total	$	387

Leases space to a tenant

Investment in Rental Real Estate, net

Schedule of future minimum rents under non-cancelable operating leases

As of December 31, 2024, future minimum rents under non-cancelable operating leases were as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	—
2026		1,040
2027		1,269
2028		1,294
2029		1,320
Thereafter		8,741
Total	$	13,664

Real Estate Owned (REO) (Tables)

12 Months Ended

Dec. 31, 2024

Real Estate Owned (REO)

Schedule of real estate owned


	Year Ended
	December 31,
	2024		2023

	(in thousands)
Real estate owned at the beginning of year	$	3,462	$	5,216
Principal basis transferred to real estate owned		28,640		1,756
Charge-off’s on principal transferred		(11,361)		—
Charges and building improvements		509		230
Proceeds from sale of real estate owned		(2,613)		(3,040)
Impairment loss		(492)		(794)
Gain on sale of real estate owned		429		94
Balance at end of year	$	18,574	$	3,462

Properties Held For Rental

Real Estate Owned (REO)

Schedule of future minimum rents

As of December 31, 2024, future minimum rents under this lease were as follows:


Years Ending December 31,	Amount
	(in thousands)
2025	$	53
2026		31
Total	$	84

Other Assets (Tables)

12 Months Ended

Dec. 31, 2024

Other Assets

Schedule of other assets


	December 31, 2024		December 31, 2023

	(in thousands)
Prepaid expenses	$	575	$	511
Other receivables		1,793		1,923
Other assets		190		538
Notes receivable		2,130		4,508
Deferred leasing cost		387		387
Leases in place intangible		568		568
Goodwill		391		391
Intangible asset – trade name		130		130
Total	$	6,164	$	8,956

Line of Credit, Mortgage Payable, and Churchill Facility (Tables)

12 Months Ended

Dec. 31, 2024

Line of Credit, Mortgage Payable, and Churchill Facility

Schedule of proceeds received and loans held for investment pledged as collateral under the Churchill Facility agreement



	December 31, 2024				December 31, 2023
	Total				Total
(in thousands)	Outstanding		Rate		Outstanding		Rate
Repurchase Agreement	$	33,708	8.69	%	$	26,461	9.47	%
Total	$	33,708			$	26,461

The following table summarizes loans held for investment pledged as collateral under the Churchill Facility agreement:


	December 31, 2024			December 31, 2023
	Total Carrying Value			Total Carrying Value
(in thousands)	Loans Pledged		Number of Loans	Loans Pledged		Number of Loans
Loans held for investment sold under the repurchase agreement	$	66,365	17	$	50,635	14
Total	$	66,365		$	50,635

Schedule of loans held for investment sold under the repurchase agreement


	December 31, 2024		December 31, 2023

	(in thousands)
Maturing within 1 year	$	56,050	$	33,389
After 1 but within 2 years		10,315		17,246
Total	$	66,365	$	50,635

Unsecured Notes Payable (Tables)

12 Months Ended

Dec. 31, 2024

Unsecured Notes Payable

Summary of future principal payments on the notes payable

The following are the future principal payments on the notes payable as of December 31, 2024:


Years ending December 31,	Amount
	(in thousands)
2025	$	56,364
2026		51,750
2027		122,125
Total principal payments		230,239
Deferred financing costs		(3,713)
Total notes payable, net of deferred financing costs	$	226,526

Summary of estimated amortization of the deferred financing costs

The estimated amortization of the deferred financing costs as of December 31, 2024 is as follows:


Years ending December 31,	Amount
	(in thousands)
2025	$	1,808
2026		1,410
2027		495
Total deferred costs	$	3,713

Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Accounts Payable and Accrued Liabilities

Schedule of accounts payable and accrued liabilities


	December 31, 2024		December 31, 2023

	(in thousands)
Accounts payable and accrued expenses	$	2,928	$	1,331
Allowance for credit losses on unfunded commitments		924		509
Accrued interest		525		482
Total	$	4,377	$	2,322

Fee Income from Loans (Tables)

12 Months Ended

Dec. 31, 2024

Fee Income from Loans

Schedule of fee income from loans


	Year Ended
	December 31,
	2024		2023

	(in thousands)
Origination and modification fees	$	5,088	$	5,941
Extension fees		990		1,236
Late and other fees		331		719
Processing fees		96		121
Construction servicing fees		457		1,015
Legal fees		250		432
Other fees		1,382		1,235
Total	$	8,594	$	10,699

Stock-Based Compensation and Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2024

Stock-Based Compensation and Employee Benefits

Schedule of companys awards granted, forfeited, or vested under the 2016 Plan


	Restricted Stock
		Weighted Average
	Number of Shares	Grant Date Fair Value
Unvested shares at December 31, 2022	189,596	$	4.94
Granted	196,056		3.87
Vested	(157,483)		4.50
Forfeited	(5,333)		3.54
Unvested shares at December 31, 2023	222,836		3.74
Granted	212,857		3.86
Vested	(195,071)		4.39
Forfeited	(333)		2.56
Unvested shares at December 31, 2024	240,289	$	1.35

Limited Liability Company Investments (Tables)

12 Months Ended

Dec. 31, 2024

Limited Liability Company Investments

Schedule of carrying value of investment

The following table details the carrying value of each investment reflected on our consolidated balance sheets as of December 31, 2024:


	Ownership		Carrying
Investment	Percentage		Value
			(in thousands )
Shem Creek Capital Fund V LLC	7.6	%	$	1,143
Shem Creek Capital Fund VI LLC	9.9	%		4,290
Shem Creek Capital Fund VII LLC	16.2	%		3,598
Shem Creek Sachem V LLC	49.0	%		2,569
Shem Creek Sachem VI LLC	45.9	%		24,756
Shem Creek Sachem 100 LLC	100.0	%		12,586
Shem Creek Capital, LLC	20.0	%		2,500
Cordo CLT Investors LLC	7.2	%		2,500
Total			$	53,942

The Company (Details)	12 Months Ended
The Company (Details)	Dec. 31, 2024 segment
The Company
Number of Operating Segments	1
Minimum
The Company
Term of debt (in years)	1 year
Maximum
The Company
Term of debt (in years)	3 years

Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 23, 2023 USD ($)	Dec. 31, 2024 USD ($) segment $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Jan. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)
Summary of Significant Accounting Policies
Number of reportable segments \| segment		1
Amount of pending/pre-foreclosure loan outstanding		$ 52,100	$ 63,700
Carrying Value		376,991	499,235
CECL Allowance		18,470	7,523		$ 105
Provision for credit losses related to loans held for investment		26,928	5,588
Foreclosure loan of allowance for credit loss		6,100	5,100
Goodwill		391	391
Goodwill Impairment		0	0
Provisions for income tax		200	0
Uncertain tax positions		$ 0	$ 0
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001	$ 0.001
Basic weighted average shares \| shares		47,413,012	44,244,988
Diluted weighted average shares \| shares		47,413,012	44,244,988
Basic (losses) earnings per share \| $ / shares		$ (0.93)	$ 0.27
Diluted (losses) earnings per share \| $ / shares		$ (0.93)	$ 0.27
Restricted Stock
Summary of Significant Accounting Policies
Dilutive securities, effect on basic, shares \| shares			222,836
Nonperforming Loan
Summary of Significant Accounting Policies
Carrying Value		$ 7,300	$ 0
Financing receivable, Held for investment		$ 57,800
Westport, CT
Summary of Significant Accounting Policies
Agreed amount to acquire a commercial building	$ 10,600
Total consideration, including capitalized acquisition-related costs	$ 10,700
Adjustment \| ASU 2016-13
Summary of Significant Accounting Policies
Initial CECL allowance adjustment				$ 2,500
CECL Allowance			$ 1,921		$ 1,921
Vehicles
Summary of Significant Accounting Policies
Property plant and equipment, useful life (in years)		5 years
Building Acquired In 2021
Summary of Significant Accounting Policies
Property plant and equipment, useful life (in years)		40 years
Minimum
Summary of Significant Accounting Policies
Estimated useful lives		7 years
Origination, modification, extension, and construction servicing fee revenue as a percentage of original loan principal amount		1.00%
Minimum \| Furniture and fixtures
Summary of Significant Accounting Policies
Property plant and equipment, useful life (in years)		3 years
Minimum \| Computer hardware and software
Summary of Significant Accounting Policies
Property plant and equipment, useful life (in years)		2 years
Maximum
Summary of Significant Accounting Policies
Estimated useful lives		40 years
Origination, modification, extension, and construction servicing fee revenue as a percentage of original loan principal amount		3.00%
Maximum \| Furniture and fixtures
Summary of Significant Accounting Policies
Property plant and equipment, useful life (in years)		5 years
Maximum \| Computer hardware and software
Summary of Significant Accounting Policies
Property plant and equipment, useful life (in years)		3 years

Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Summary of Significant Accounting Policies
Cost	$ 3,850	$ 3,782
Accumulated Depreciation	(628)	(409)
Total property and equipment, net	3,222	3,373
Building
Summary of Significant Accounting Policies
Cost	2,557	2,541
Accumulated Depreciation	(110)	(47)
Total property and equipment, net	2,447	2,494
Land
Summary of Significant Accounting Policies
Cost	255	255
Total property and equipment, net	255	255
Furniture and fixtures
Summary of Significant Accounting Policies
Cost	308	281
Accumulated Depreciation	(117)	(51)
Total property and equipment, net	191	230
Computer hardware and software
Summary of Significant Accounting Policies
Cost	295	276
Accumulated Depreciation	(246)	(213)
Total property and equipment, net	49	63
Vehicles
Summary of Significant Accounting Policies
Cost	435	429
Accumulated Depreciation	(155)	(98)
Total property and equipment, net	$ 280	$ 331

Fair Value Measurement (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Fair Value Measurement
Cash and cash equivalents	$ 18,066	$ 12,598
Advances from borrowers	4,047	10,998
Mortgage Payable	1,002	1,081
Real estate owned, net	18,574	3,462	$ 5,216
Level 1 \| Carrying Amount
Fair Value Measurement
Cash and cash equivalents	18,066	12,598
Notes payable (listed) - fixed rate debt	231,241	289,482
Level 1 \| Fair Value Measurement
Fair Value Measurement
Cash and cash equivalents	18,066	12,598
Notes payable (listed) - fixed rate debt	194,810	260,249
Level 2 \| Carrying Amount
Fair Value Measurement
Lines of credit and repurchase agreements - variable rate debt Loans held for sale, net	73,708	88,253
Level 2 \| Fair Value Measurement
Fair Value Measurement
Lines of credit and repurchase agreements - variable rate debt Loans held for sale, net	73,708	88,253
Level 3 \| Carrying Amount
Fair Value Measurement
Loans held for sale, net	10,970
Loans held for investment, net	356,571	487,065
Interest and fees receivable and due from borrowers	8,918	14,072
Investments in limited liability companies	53,942	43,036
Advances from borrowers	4,047	10,998
Mortgage Payable	1,002	1,081
Level 3 \| Fair Value Measurement
Fair Value Measurement
Loans held for sale, net	10,970
Loans held for investment, net	356,571	487,065
Interest and fees receivable and due from borrowers	8,918	14,072
Investments in limited liability companies	53,942	43,036
Advances from borrowers	4,047	10,998
Mortgage Payable	$ 1,002	1,081
Minimum
Fair Value Measurement
Percentage of asset value	1.00%
Maximum
Fair Value Measurement
Percentage of asset value	8.00%
Recurring
Fair Value Measurement
Stocks and ETFs	$ 1,517	1,755
Mutual funds		16,237
Debt securities		18,945
Preferred/Fixed rate cap securities		839
Loans held for sale, net	10,970
Recurring \| Level 1
Fair Value Measurement
Stocks and ETFs	1,517	1,755
Mutual funds		16,237
Debt securities		18,945
Recurring \| Level 2
Fair Value Measurement
Preferred/Fixed rate cap securities		839
Recurring \| Level 3
Fair Value Measurement
Loans held for sale, net	10,970
Nonrecurring
Fair Value Measurement
Individually evaluated loans, net of allowance for credit losses	80,757	21,597
Real estate owned, net	18,574	3,462
Nonrecurring \| Level 3
Fair Value Measurement
Individually evaluated loans, net of allowance for credit losses	80,757	21,597
Real estate owned, net	$ 18,574	$ 3,462

Fair Value Measurement - Company's available-for-sale (AFS) securities and other comprehensive income (OCI) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
OCI from AFS securities - debt securities:
Unrealized gain (losses) on debt securities at beginning of period	$ (316)	$ 562
Unrealized holding gains on available for sale ("AFS") securities		69
Reclassification adjustment for gains / losses realized in net (loss) income	(316)
Reclassification of losses from unrealized to provision for credit losses		809
Change in OCI from AFS debt securities	(316)	878
Unrealized gain on investment securities		69
Balance at end of period		(316)
Investment owned, cost	0	800
Fair market value of securities	$ 0	800
Cost basis of securities		$ 1,600

- Definition

Cost of the investment.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 55
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477439/946-210-55-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478795/946-210-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478795/946-210-50-6

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479168/946-830-55-12

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478795/946-210-50-6

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(d))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479886/946-10-S99-3

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.12-12(Column C)(Footnote 8)(a)(3))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-12B(Column C)(Footnote 11)(a)(3))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 6
-Subparagraph (SX 210.12-14(Column F)(Footnote 5)(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 19
-Subparagraph (3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-19

+ Details

Loans and Allowance for Credit Losses - Company's loan portfolio by the past due (Details) - Loans held for investment - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Loans and Allowance for Credit Losses
Financing receivable, Current fiscal year	$ 376,991
Financing receivable, Fiscal year before current fiscal year		$ 499,235
Current
Loans and Allowance for Credit Losses
Financing receivable, Current fiscal year	223,513
Financing receivable, Fiscal year before current fiscal year		332,212
30 to 59 days past due
Loans and Allowance for Credit Losses
Financing receivable, Current fiscal year	49,460
Financing receivable, Fiscal year before current fiscal year		78,577
60 to 89 days past due
Loans and Allowance for Credit Losses
Financing receivable, Current fiscal year	16,936
Financing receivable, Fiscal year before current fiscal year		3,855
Greater than 90 days
Loans and Allowance for Credit Losses
Financing receivable, Current fiscal year	$ 87,082
Financing receivable, Fiscal year before current fiscal year		$ 84,591

Loans and Allowance for Credit Losses - CECL Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Loans and Allowance for Credit Losses
Allowance for credit losses	$ (18,470)	$ (7,523)	$ (105)
Interest and fees receivable	3,133	902
Due from borrower	1,135	352
Unfunded commitments	924	509
Total Allowance for credit losses	23,662	9,286
Allowance for credit losses on loans-pre-adoption, Loans		105
Allowance for credit losses on loans-pre-adoption, Interest receivable		782
Allowance for credit losses on loans-pre-adoption, Due from borrower		338
Allowance for credit losses on loans-pre-adoption, Total CECL allowance		1,225
Provision for losses related to loans	22,405	5,497
Provision for losses related to loans, Interest receivable	2,231	94
Provision for losses related to loans, Due from borrower	1,877	10
Provision for losses related to loans, Unfunded commitments	415	(13)
Provision for losses related to loans, Total CECL allowance	26,928	5,588
Charge-offs, Loans	(11,458)
Charge-offs, Due from borrower	(1,094)	(17)
Charge-offs, Total Allowance for credit losses	(12,552)	(17)
Fair market value of securities	$ 0	800
Cost basis of securities		1,600
Adjustment \| ASU 2016-13
Loans and Allowance for Credit Losses
Allowance for credit losses		$ (1,921)	(1,921)
Interest and fees receivable			26
Due from borrower			21
Unfunded commitments			522
Total Allowance for credit losses			$ 2,490

Loans and Allowance for Credit Losses - CECL Allowance by Geographical Location (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	$ 7,523	$ 105
Provision for credit losses related to loans pending foreclosure	22,405	5,497
Charge-offs, Loans	(11,458)
Allowance for credit losses ending balance	18,470	7,523
Adjustment \| ASU 2016-13
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	1,921	1,921
Allowance for credit losses ending balance		1,921
New England
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	5,764	105
Provision for credit losses related to loans pending foreclosure	13,859	4,357
Charge-offs, Loans	(6,779)
Allowance for credit losses ending balance	12,844	5,764
New England \| Adjustment \| ASU 2016-13
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	1,302
Allowance for credit losses ending balance		1,302
Mid-Atlantic
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	1,324
Provision for credit losses related to loans pending foreclosure	533	1,114
Allowance for credit losses ending balance	1,857	1,324
Mid-Atlantic \| Adjustment \| ASU 2016-13
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	210
Allowance for credit losses ending balance		210
South
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	435
Provision for credit losses related to loans pending foreclosure	6,046	33
Charge-offs, Loans	(4,679)
Allowance for credit losses ending balance	1,802	435
South \| Adjustment \| ASU 2016-13
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	402
Allowance for credit losses ending balance		402
West
Mortgages receivable, net
Provision for credit losses related to loans pending foreclosure	1,967
Allowance for credit losses ending balance	1,967
Provision for credit losses related to loans pending foreclosure		(7)
West \| Adjustment \| ASU 2016-13
Mortgages receivable, net
Allowance for credit losses on loans-re-adoption beginning balance	$ 7
Allowance for credit losses ending balance		$ 7

Loans and Allowance for Credit Losses - CECL Allowance by charge-offs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($)
Loans and Allowance for Credit Losses.
2022	$ 5,550
2021	5,897
2020	11
Total	$ 11,458

Loans and Allowance for Credit Losses - CECL Allowances by loan's portfolio geographical location (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Mortgages receivable, net
Carrying Value	$ 376,991	$ 499,235
% of Portfolio	100.00%	100.00%
New England
Mortgages receivable, net
Carrying Value	$ 179,421	$ 232,437
% of Portfolio	47.60%	46.60%
Mid-Atlantic
Mortgages receivable, net
Carrying Value	$ 42,304	$ 4,101
% of Portfolio	11.20%	0.80%
South
Mortgages receivable, net
Carrying Value	$ 151,165	$ 163,409
% of Portfolio	40.10%	32.70%
West
Mortgages receivable, net
Carrying Value	$ 4,101	$ 99,288
% of Portfolio	1.10%	19.90%

Loans and Allowance for Credit Losses - Internal credit quality indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Mortgages receivable, net
Carrying Value	$ 376,991	$ 499,235
Year Originated, 2024/2023	46,784	86,742
Year Originated, 2023/2022	83,704	173,756
Year Originated, 2022/2021	80,350	201,967
Year Originated, 2021/2020	148,773	16,780
Year Originated, 2020/2019	9,879	11,491
Year Originated, Prior	7,501	8,499
Under 500
Mortgages receivable, net
Carrying Value	140	1,764
Year Originated, 2024/2023	140	216
Year Originated, Prior		1,548
501-550
Mortgages receivable, net
Carrying Value	2,860	6,555
Year Originated, 2024/2023		2,331
Year Originated, 2023/2022		1,440
Year Originated, 2022/2021		1,864
Year Originated, 2021/2020	1,060
Year Originated, 2020/2019		362
Year Originated, Prior	1,800	558
551-600
Mortgages receivable, net
Carrying Value	7,094	33,723
Year Originated, 2024/2023	1,222	15,019
Year Originated, 2023/2022	290	9,839
Year Originated, 2022/2021	2,170	6,854
Year Originated, 2021/2020	1,816	1,127
Year Originated, 2020/2019	636	337
Year Originated, Prior	960	547
601-650
Mortgages receivable, net
Carrying Value	28,779	103,601
Year Originated, 2024/2023	8,432	16,053
Year Originated, 2023/2022	3,347	26,981
Year Originated, 2022/2021	1,798	52,073
Year Originated, 2021/2020	7,411	3,988
Year Originated, 2020/2019	6,149	4,187
Year Originated, Prior	1,642	319
651-700
Mortgages receivable, net
Carrying Value	35,711	97,284
Year Originated, 2024/2023	4,250	17,862
Year Originated, 2023/2022	7,177	40,318
Year Originated, 2022/2021	10,302	30,203
Year Originated, 2021/2020	12,079	3,662
Year Originated, 2020/2019	660	3,015
Year Originated, Prior	1,243	2,224
701-750
Mortgages receivable, net
Carrying Value	159,575	167,977
Year Originated, 2024/2023	6,275	19,935
Year Originated, 2023/2022	40,459	51,276
Year Originated, 2022/2021	11,982	83,946
Year Originated, 2021/2020	97,980	7,411
Year Originated, 2020/2019	1,023	2,901
Year Originated, Prior	1,856	2,508
751-800
Mortgages receivable, net
Carrying Value	124,599	64,313
Year Originated, 2024/2023	26,465	14,461
Year Originated, 2023/2022	32,016	20,806
Year Originated, 2022/2021	36,280	27,027
Year Originated, 2021/2020	28,427	592
Year Originated, 2020/2019	1,411	689
Year Originated, Prior		738
801-850
Mortgages receivable, net
Carrying Value	18,233	24,018
Year Originated, 2024/2023		865
Year Originated, 2023/2022	415	23,096
Year Originated, 2022/2021	$ 17,818
Year Originated, Prior		$ 57

Loans and Allowance for Credit Losses - Loan modifications made to borrowers experiencing financial difficulty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Mortgages receivable, net
Carrying Value	$ 23,100	$ 18,700
Financial Effect, weighted average months added to the life of the loans		16 months 21 days
Term extension
Mortgages receivable, net
Carrying Value	$ 108,045	$ 77,138
% of Total Carrying Value of Loans held for investment, net	30.10%	15.70%
Financial Effect, weighted average months added to the life of the loans	11 months 15 days
Other
Mortgages receivable, net
Carrying Value	$ 12,173	$ 20,342
% of Total Carrying Value of Loans held for investment, net	3.40%	4.10%

Loans and Allowance for Credit Losses - Performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Loans modified during the period ended
Carrying Value	$ 23,100	$ 18,700
Term extension
Loans modified during the period ended
Carrying Value	108,045	77,138
Term extension \| Current
Loans modified during the period ended
Carrying Value	61,145	73,037
Term extension \| 90-119 days past due
Loans modified during the period ended
Carrying Value	250
Term extension \| 120+ days past due
Loans modified during the period ended
Carrying Value	46,345	4,101
Other
Loans modified during the period ended
Carrying Value	12,173	20,342
Other \| Current
Loans modified during the period ended
Carrying Value	$ 12,173	18,777
Other \| 90-119 days past due
Loans modified during the period ended
Carrying Value		$ 1,565

Loans and Allowance for Credit Losses - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) borrower loan	Dec. 31, 2023 USD ($) loan
Mortgages receivable, net
Number of loans held for investment \| loan	157	311
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Number of Loans, Held For Sale \| loan	11
Loans held for sale	$ 15,900
Aggregate valuation allowance	4,900
Proceeds from sale of loans	36,100
Net gain resulting from a sale of loans	(19,700)
Net gain resulting from a sale of loans on charges due on principal	2,300
Loss on sale of Loans	(21,973)
Derecognition of loans held for sale	55,800
Direct reserves	13,300	$ 5,200
Aggregate amounts of loans funded	134,298	204,885
Principal collections on loans	190,971	167,036
Face amount of mortgages	$ 42,900
Default interest rate on mortgage loans	18.00%
Deferred loan fee revenue	$ 2,000	4,600
Deferred fees for loans held for sale	0	0
Provision for credit losses related to loans	26,928	5,588
Carrying Value	$ 23,100	$ 18,700
Number of loans defaulted \| loan	6	1
Aggregate outstanding balance	$ 5,700	$ 1,600
Percentage of outstanding principal balance	1.60%	0.30%
Number of loans modified experience difficulty \| loan	10	14
Outstanding principal balance	$ 12,200	$ 29,100
One borrower
Mortgages receivable, net
Number of borrowers \| borrower	1
Outstanding mortgage loan portfolio	$ 55,000	50,400
Nonaccrual loans
Mortgages receivable, net
Loans held for sale	15,900	0
Loans on nonaccrual status	87,000	84,600
Interest income on nonaccrual loans	$ 700	$ 600
Mortgage Concentration Risk \| Revenue Benchmark \| One borrower
Mortgages receivable, net
Loans outstanding (in percent)	14.00%	10.10%
Minimum
Mortgages receivable, net
Term of debt (in years)	1 year
Interest rate (as a percent)	6.50%
Maximum
Mortgages receivable, net
Term of debt (in years)	3 years
Interest rate (as a percent)	15.00%

Investment in Rental Real Estate, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Investment in Rental Real Estate, net
Cost	$ 14,216	$ 10,591
Accumulated Depreciation	(184)	(37)
Investment in Rental Real Estate, Net	14,032	10,554
Depreciation, Depletion and Amortization	100
Land
Investment in Rental Real Estate, net
Cost	4,557	3,957
Investment in Rental Real Estate, Net	4,557	3,957
Building
Investment in Rental Real Estate, net
Cost	4,936	4,936
Accumulated Depreciation	(154)	(31)
Investment in Rental Real Estate, Net	$ 4,782	4,905
Property plant and equipment, useful life (in years)	40 years
Site improvements
Investment in Rental Real Estate, net
Cost	$ 359	359
Accumulated Depreciation	(30)	(6)
Investment in Rental Real Estate, Net	$ 329	353
Property plant and equipment, useful life (in years)	15 years
Tenant improvements
Investment in Rental Real Estate, net
Cost	$ 1,223	1,183
Investment in Rental Real Estate, Net	1,223	1,183
Construction in progress
Investment in Rental Real Estate, net
Cost	3,141	157
Investment in Rental Real Estate, Net	$ 3,141	$ 157

Investment in Rental Real Estate, net - Future minimum rents under non-cancelable operating leases (Details) - Leases space to a tenant $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($)
Investment in Rental Real Estate, net
Lease provides for free rent and tenant improvement allowance	$ 2,700
2026	1,040
2027	1,269
2028	1,294
2029	1,320
Thereafter	8,741
Total	$ 13,664

Investment in Rental Real Estate, net - Estimated annual amortization of acquired below market lease intangible (Details) - Westport, CT $ in Thousands	Dec. 31, 2024 USD ($)
Investment in Rental Real Estate, net
2025	$ 66
2026	66
2027	66
2028	66
2029	66
Thereafter	335
Total	$ 665

Investment in Rental Real Estate, net - Estimated annual amortization of acquired in-place lease intangible (Details) - Westport, CT - Leases, Acquired-in-Place $ in Thousands	Dec. 31, 2024 USD ($)
Investment in Rental Real Estate, net
2025	$ 57
2026	57
2027	57
2028	57
2029	57
Thereafter	283
Total	$ 568

Investment in Rental Real Estate, net - Estimated annual amortization of deferred leasing costs (Details) - Westport, CT $ in Thousands	Dec. 31, 2024 USD ($)
Investment in Rental Real Estate, net
2025	$ 39
2026	39
2027	39
2028	39
2029	39
Thereafter	192
Total	$ 387

Investment in Rental Real Estate, net - Additional information (Details) - Westport, CT $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2024 item	Dec. 31, 2024 USD ($)
Investment in Rental Real Estate, net
Number of market rate residential units \| item	8
Number of affordable rate units \| item	2
Agreed payment amount approved and sold residential units \| $		$ 0.1
Minimum
Investment in Rental Real Estate, net
Potential payment for residential units \| $		$ 0.6

Real Estate Owned (REO) (Details) $ in Thousands	12 Months Ended
Real Estate Owned (REO) (Details) $ in Thousands	Dec. 31, 2024 USD ($) property	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($)
Real Estate Owned (REO)
Investments in real estate own, net	$ 18,574	$ 3,462	$ 5,216
Impairment loss	492	794
Real estate held for rental	800	800
Real estate held-for-sale	$ 17,800	$ 2,700
Number of properties held for sale \| property	7	7
Net gain (loss) on property held for sale	$ 400	$ 100
Number of properties held for rental \| property	1
Lease term of rental property held for rental	5 years

Real Estate Owned (REO) - Activity of the Company's real estate owned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Real Estate Owned (REO)
Real estate owned at the beginning of year	$ 3,462	$ 5,216
Principal basis transferred to real estate owned	28,640	1,756
Charge-off's on principal transferred	(11,361)
Charges and building improvements	509	230
Proceeds from sale of real estate owned	(2,613)	(3,040)
Impairment loss	(492)	(794)
Gain on sale of real estate owned	429	94
Balance at end of year	$ 18,574	$ 3,462

Real Estate Owned (REO) - Rental payments due from real estate (Details) - Properties Held For Rental $ in Thousands	Dec. 31, 2024 USD ($)
Real Estate Owned (REO)
2025	$ 53
2026	31
Total	$ 84

Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Other Assets
Prepaid expenses	$ 575	$ 511
Other receivables	1,793	1,923
Other assets	190	538
Notes receivable	2,130	4,508
Deferred leasing cost	387	387
Leases in place intangible	568	568
Goodwill	391	391
Intangible asset - trade name	130	130
Total	$ 6,164	$ 8,956

Line of Credit, Mortgage Payable, and Churchill Facility (Details)						1 Months Ended		12 Months Ended
	Mar. 20, 2025	Sep. 08, 2023 USD ($)	Mar. 02, 2023 USD ($)	Feb. 28, 2023 USD ($)	Jul. 21, 2021 USD ($)	Mar. 31, 2025 USD ($)	Feb. 28, 2023 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020	Dec. 31, 2023 USD ($)
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding								$ 40,000,000			$ 61,792,000
Total outstanding principal balance on mortgage								230,239,000
Repayment of line of credit								$ 49,751,000
Amortization schedule				20 years
Term of Federal Home Loan Bank of Boston Classic Advance Rate							5 years
Threshold asset coverage ratio								150.00%
Wells Fargo credit line
Line of Credit, Mortgage Payable, and Churchill Facility
Spread on variable rate										1.75%
Total Outstanding								$ 0			26,800,000
Needham Credit Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding								$ 40,000,000			$ 35,000,000
Fixed annual rate								7.25%			8.25%
Right to extend the term (in years)			1 year
Interest rate		4.50%
Maximum borrowing capacity		$ 65,000,000	$ 45,000,000
Maximum contingent borrowing capacity			$ 75,000,000
Percentage of asset coverage ratio								150.00%
Minimum cash, cash equivalents and availability								$ 10,000,000
Needham Credit Facility \| Subsequent Events
Line of Credit, Mortgage Payable, and Churchill Facility
Repayment of line of credit						$ 39,600,000
Outstanding indebtedness						$ (3,500,000)
Needham Credit Facility \| Subsidiaries \| Subsequent Events
Line of Credit, Mortgage Payable, and Churchill Facility
Outstanding balance (in percent)						2
Proceeds from lines of credit						$ 36,100,000
Right to extend the term (in years)	1 year
Maximum borrowing capacity						50,000,000
Needham Credit Facility \| Prime Rate
Line of Credit, Mortgage Payable, and Churchill Facility
Percentage reduced from prime rate for calculating annual interest rate		0.25%
New Haven Bank Mortgage
Line of Credit, Mortgage Payable, and Churchill Facility
Principal amount				$ 1,660,000			$ 1,660,000		$ 1,400,000
Total outstanding principal balance on mortgage								1,000,000	$ 750,000		$ 1,100,000
Fixed annual rate				5.75%			5.75%		3.75%
Interest accrued period							60 months		72 months
New Haven Bank Mortgage \| Federal Home Loan Bank of Boston Classic Advance Rate
Line of Credit, Mortgage Payable, and Churchill Facility
Spread on variable rate							1.75%
Churchill Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding								$ 33,708,000			$ 26,461,000
Fixed annual rate					0.25%			8.69%			9.47%
Repurchase face amount					$ 200,000,000
Notes callable period					90 days
Threshold asset coverage ratio								150.00%
Term of debt (in years)								180 days
Minimum unencumbered cash and cash equivalent, percentage								2.50%
Churchill Facility \| Repurchase Agreement [Member]
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding								$ 33,708,000			$ 26,461,000
Minimum
Line of Credit, Mortgage Payable, and Churchill Facility
Repayment of long-term loan								$ 47,000
Term of debt (in years)								1 year
Minimum \| Needham Credit Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Notice period for terminating the Credit Facility, prior to the proposed date of termination			10 days
Adjusted EBITDA coverage ratio								1
Minimum \| Needham Credit Facility \| Asset Pledged as Collateral \| Subsidiaries \| Subsequent Events
Line of Credit, Mortgage Payable, and Churchill Facility
Loans, net						$ 30,000,000
Minimum \| Churchill Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Fixed annual rate					3.00%
Maximum
Line of Credit, Mortgage Payable, and Churchill Facility
Repayment of long-term loan								$ 59,000
Term of debt (in years)								3 years
Maximum \| Needham Credit Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Adjusted EBITDA coverage ratio								1.4
Maximum \| Churchill Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Fixed annual rate					4.00%

Line of Credit, Mortgage Payable, and Churchill Facility - Schedule of proceeds received and loans held for investment pledged as collateral under the Churchill Facility agreement (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding	$ 40,000	$ 61,792
Churchill Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding	33,708	26,461
Total Carrying Value Loans Pledged	66,365	50,635
Churchill Facility \| Repurchase Facility
Line of Credit, Mortgage Payable, and Churchill Facility
Total Outstanding	$ 33,708	$ 26,461
Rate	8.69%	9.47%
Total Carrying Value Loans Pledged	$ 66,365	$ 50,635
Number of Loans \| loan	17	14

- Definition

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

+ References

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+ Details

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Line of Credit, Mortgage Payable, and Churchill Facility - Loans held for investment sold under the repurchase agreement (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Line of Credit, Mortgage Payable, and Churchill Facility
Assets Sold under Agreements to Repurchase, Repurchase Liability	$ 66,365	$ 50,635
Loan \| Maturity withing one year
Line of Credit, Mortgage Payable, and Churchill Facility
Assets Sold under Agreements to Repurchase, Repurchase Liability	56,050	33,389
Loan \| Maturity one year to two year
Line of Credit, Mortgage Payable, and Churchill Facility
Assets Sold under Agreements to Repurchase, Repurchase Liability	$ 10,315	$ 17,246

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
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-Section 55
-Paragraph 8
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
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-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://www.xbrl.org/2003/role/exampleRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
-Paragraph 1B
-Subparagraph (h)
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 27: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482900/835-30-50-1

+ Details

Unsecured Notes Payable (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Unsecured Notes Payable
Deferred financing costs	$ 3,713	$ 6,048
Notes issued denomination	$ 25
Threshold percentage of taxable income to prohibit distribution	90.00%
Threshold asset coverage ratio	150.00%
Period of written notice to redeem notes without premium or penalty	30 days
Repayments of Lines of Credit	$ 49,751
Notes
Unsecured Notes Payable
Aggregate amount outstanding	230,200
Deferred financing costs	3,700
September 2025 Notes
Unsecured Notes Payable
Aggregate amount outstanding	$ 56,400
Fixed annual rate	7.75%
Notes issued denomination	$ 24.75
Principal amount	$ 28,000
December 2026 Notes
Unsecured Notes Payable
Aggregate amount outstanding	$ 51,800
Fixed annual rate	6.00%
March 2027 Notes
Unsecured Notes Payable
Aggregate amount outstanding	$ 51,900
Fixed annual rate	6.00%
June 2027 Notes
Unsecured Notes Payable
Aggregate amount outstanding	$ 30,000
Fixed annual rate	7.125%
September 2027 Notes
Unsecured Notes Payable
Aggregate amount outstanding	$ 40,300
Fixed annual rate	8.00%

Unsecured Notes Payable - Future principal payments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Unsecured Notes Payable
2025	$ 56,364
2026	51,750
2027	122,125
Total principal payments	230,239
Deferred financing costs	(3,713)	$ (6,048)
Total notes payable, net of deferred financing costs	$ 226,526

- Definition

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

+ References + Details

Unsecured Notes Payable - Estimated amortization of the deferred financing costs (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Unsecured Notes Payable
2025	$ 1,808
2026	1,410
2027	495
Total deferred costs	$ 3,713	$ 6,048

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Accounts Payable and Accrued Liabilities
Accounts payable and accrued expenses	$ 2,928	$ 1,331
Allowance for credit losses on unfunded commitments	924	509
Accrued interest	525	482
Total	$ 4,377	$ 2,322

Fee Income from Loans (Details) - USD ($) $ in Thousands	12 Months Ended
Fee Income from Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Fee Income from Loans
Origination and modification fees	$ 5,088	$ 5,941
Extension fees	990	1,236
Late and other fees	331	719
Processing fees	96	121
Construction servicing fees	457	1,015
Legal fees	250	432
Other fees	1,382	1,235
Total	$ 8,594	$ 10,699

Commitments and Contingencies (Details) $ in Millions	12 Months Ended
Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2024 USD ($) property
Commitments and Contingencies
Number of mortgage properties \| property	2
Mortgages receivable	$ 1.9
Unfunded Commitments
Commitments and Contingencies
Future funding obligations, Loans held for investment	49.9
Future funding obligations, Investment in limited liability companies	$ 4.4

Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Shareholders
Related Party Transactions
Shareholders totaled	$ 17.2	$ 25.6
Interest income	1.4	2.4
Wholly owned entity of management
Related Party Transactions
Shareholders totaled	17.0	25.0
Daughter of chief executive officer
Related Party Transactions
Compensation provided	$ 0.2	$ 0.2

Concentrations of Credit Risk (Details)	Dec. 31, 2024 USD ($)
Credit concentration risk
Concentrations of Credit Risk
Cash and cash equivalents insured by the federal deposit insurance corporation	$ 250,000

Stock-Based Compensation and Employee Benefits (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 16, 2018	Dec. 31, 2024	Dec. 31, 2023	Oct. 27, 2016
Stock-Based Compensation and Employee Benefits
Percentage of employer contribution	3.00%
401(k) Plan expenses		$ 0.1	$ 0.2
2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Maximum number of common shares reserved for the grant of awards				1,500,000
Aggregate shares available for grants in period		781,262
Stock based compensation expense		$ 0.9	$ 0.8
Unrecorded stock based compensation expense		$ 0.7
Maximum number of shares issuable to one individual in plan year				100,000
Restricted Stock
Stock-Based Compensation and Employee Benefits
Unvested restricted common shares		333	5,333
Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Granted, Number of Shares		212,857	196,056
Fair value of shares granted		$ 0.8
Shares vested		195,071	157,483
Unvested restricted common shares		333	5,333
Vested on May 9, 2024 \| Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Shares vested		33,666
Vested on May 1, 2025 \| Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Shares vested		33,667
Vested on May 1, 2026 \| Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Shares vested		33,667
Vested on January 1, 2025 \| Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Shares vested		37,285
Vested on January 1, 2026 \| Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Stock grants in period, gross		37,286
Vested on January 1, 2027 \| Restricted Stock \| 2016 Equity Compensation plan
Stock-Based Compensation and Employee Benefits
Stock grants in period, gross		37,286

Stock-Based Compensation and Employee Benefits - Company awards granted, forfeited, or vested under the 2016 Plan (Details) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Number of Shares
Forfeited, Number of Shares	(333)	(5,333)
2016 Equity Compensation plan
Number of Shares
Beginning balance, Number of unvested shares	222,836	189,596
Granted, Number of Shares	212,857	196,056
Vested, Number of Shares	(195,071)	(157,483)
Forfeited, Number of Shares	(333)	(5,333)
Ending balance, Number of unvested shares	240,289	222,836
Weighted Average Grant Date Fair Value
Beginning balance, Weighted Average Grant Date Fair Value	$ 3.74	$ 4.94
Granted, Weighted Average Grant Date Fair Value	3.86	3.87
Vested, Weighted Average Grant Date Fair Value	4.39	4.5
Forfeited, Weighted Average Grant Date Fair Value	2.56	3.54
Ending balance, Weighted Average Grant Date Fair Value	$ 1.35	$ 3.74

Equity (Details) - USD ($)				1 Months Ended	12 Months Ended
Equity (Details) - USD ($)	Oct. 10, 2024	Jun. 17, 2024	Aug. 24, 2022	Oct. 31, 2022	Dec. 31, 2024	Dec. 31, 2023
Equity
Issuance costs					$ 100,000
Stock repurchase value				$ 7,500,000	$ 1,489,000	$ 226,000
Repurchase of common stock					581,745	71,000
Proceeds from issuance of Series A Preferred Stock, net of expenses					$ 5,706,000	$ 2,563,000
Percent of discount from liquidation preference (in percent)						17.60%
Proceeds from issuance of common shares, net of expenses					2,050,000	$ 20,450,000
Aggregate purchase price for sale of shares					5,706,000	2,564,000
New Repurchase Plan
Equity
Stock repurchase value	$ 5,802,959
At the market offering
Equity
Authorized amount to be issued		$ 48,700,000
Preferred stock liquidation preference value					$ 6,900,000	$ 3,200,000
Number of shares issued during the period					568,711	5,546,891
Gross proceeds from sale of shares					$ 2,100,000
Proceeds from issuance of Series A Preferred Stock, net of expenses						$ 5,800,000
Proceeds from issuance of common shares, net of expenses						$ 20,500,000
At the market offering \| Series A Preferred Stock
Equity
Number of shares issued during the period					276,825	126,923
Common shares under prospectus supplement Dated August 24, 2022
Equity
Authorized amount to be issued			$ 75,000,000
Common shares under prospectus supplement Dated August 24, 2022 \| At the market offering \| Series A Preferred Stock
Equity
Preferred stock liquidation preference value			$ 25,000,000
Common shares available for future sale					$ 49,900,000
Preferred stock available for future sale					$ 16,600,000
Percent of discount from liquidation preference (in percent)					15.90%

Limited Liability Company Investments - Carrying value (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2024	Dec. 31, 2023
Limited Liability Company Investments
Investments in limited liability companies	$ 53,942		$ 53,942	$ 43,036
Shem Creek Capital Fund V LLC
Limited Liability Company Investments
Ownership percentage			7.60%
Investments in limited liability companies	1,143		$ 1,143
Shem Creek Capital Fund VI LLC
Limited Liability Company Investments
Ownership percentage			9.90%
Investments in limited liability companies	4,290		$ 4,290
Shem Creek Capital Fund VII LLC
Limited Liability Company Investments
Ownership percentage			16.20%
Investments in limited liability companies	3,598		$ 3,598
Shem Creek Sachem V LLC
Limited Liability Company Investments
Ownership percentage			49.00%
Investments in limited liability companies	2,569		$ 2,569
Shem Creek Sachem VI LLC
Limited Liability Company Investments
Ownership percentage			45.90%
Investments in limited liability companies	24,756		$ 24,756
Shem Creek Sachem 100 LLC
Limited Liability Company Investments
Ownership percentage			100.00%
Investments in limited liability companies	12,586		$ 12,586
Shem Creek Capital
Limited Liability Company Investments
Ownership percentage			20.00%
Investments in limited liability companies	$ 2,500		$ 2,500
Cordo CLT Investors LLC
Limited Liability Company Investments
Ownership percentage	11.33%	21.60%	7.20%
Investments in limited liability companies	$ 2,500		$ 2,500

Limited Liability Company Investments (Details) $ in Thousands		1 Months Ended		12 Months Ended
	Dec. 31, 2024 USD ($) company	Feb. 28, 2025 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2024 USD ($) company item	Dec. 31, 2023 USD ($)
Limited Liability Company Investments
Partnership interest, Amount	$ 53,942			$ 53,942	$ 43,036
Payments to acquire equity method investments				18,271	13,896
Income from limited liability company investments				5,239	3,522
Unfunded partnership commitments	$ 4,400			4,400
Shem Creek Capital
Limited Liability Company Investments
Payments to acquire equity method investments				$ 2,500
Purchase additional percentage of ownership	10.00%			10.00%
Percentage of ownership including additional percentage	30.00%			30.00%
Number of additional separate options \| item				2
Percentage of additional separate options	5.00%			5.00%
Amount to pay for additional separate option	$ 1,400			$ 1,400
Amount to pay for additional separate option two acquired	$ 1,500			$ 1,500
Shem Creek Capital \| Subsequent Events
Limited Liability Company Investments
Partnership interest, Percentage		20.00%
Payments to acquire equity method investments		$ 2,500
Seven of Shem Creek Capital Limited Liability Companies
Limited Liability Company Investments
Number of limited liability companies managed by a commercial real estate finance company \| company	7			7
Partnership interest, Amount	$ 51,400			$ 51,400
Income from limited liability company investments				$ 5,100	$ 3,500
Seventh ownership interest \| Shem Creek Capital
Limited Liability Company Investments
Partnership interest, Percentage	20.00%			20.00%
Cordo CLT Investors LLC
Limited Liability Company Investments
Investments in partnerships			$ 2,500
Membership interest			7.2
Ownership interest	11.33%		21.60%	7.20%
Partnership interest, Amount	$ 2,500			$ 2,500

Series A Preferred Stock (Details) - $ / shares	12 Months Ended
Series A Preferred Stock (Details) - $ / shares	Dec. 31, 2024	Dec. 31, 2023
Series A Preferred Stock
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock conversion, shares issued	72,575,000
Series A Preferred Stock
Series A Preferred Stock
Preferred stock, shares authorized	2,903,000	2,903,000
Preferred stock, par value (in dollars per share)	$ 0.001
Percentage of preferred stock redeemed	7.75%
Share price	$ 25
Liquidation preference per annum	1.9375
Preferred stock, redemption price per share	$ 25
Redemption period for preference stock	120 days

Subsequent Events (Details) - USD ($)						12 Months Ended
Subsequent Events (Details) - USD ($)	Mar. 15, 2025	Mar. 10, 2025	Mar. 06, 2025	Mar. 05, 2025	Feb. 24, 2025	Dec. 31, 2024	Dec. 31, 2023
Subsequent Events
Share authorized						11,857	30,890
Restricted Stock
Subsequent Events
Forfeited, Number of Shares						333	5,333
Restricted Stock \| 2016 Equity Compensation plan
Subsequent Events
Number of shares granted						212,857	196,056
Forfeited, Number of Shares						333	5,333
Subsequent Events
Subsequent Events
Share authorized		362,915
Maximum number of shares authorized to issuance per person		100,000
Subsequent Events \| Series A Preferred Stock
Subsequent Events
Dividend rate on preferred stock					7.75%
Subsequent Events \| Restricted Stock \| 2016 Equity Compensation plan
Subsequent Events
Share authorized		320,168
Subsequent Events \| Restricted Stock \| Employee
Subsequent Events
Fair value		$ 500,000
Subsequent Events \| Restricted Stock \| John Villano
Subsequent Events
Number of shares granted		420,168
Subsequent Events \| Restricted Stock \| John Villano \| 2016 Equity Compensation plan
Subsequent Events
Fair value		$ 420,168,000
Forfeited, Number of Shares		420,168
Subsequent Events \| Restricted Stock \| Non-employee
Subsequent Events
Number of shares granted		60,000
Fair value		$ 71,400
Subsequent Events \| Restricted Stock \| Non-employee \| Arthur Goldberg, Brian Prinz, Leslie Bernhard And Jeffery Walraven
Subsequent Events
Number of shares granted		20,000
Subsequent Events \| Restricted Stock \| Non-employee \| Arthur Goldberg, Brian Prinz and Leslie Bernhard
Subsequent Events
Lump sum cash payment		$ 23,800
Subsequent Events \| O 2025 Q1 Dividends
Subsequent Events
Dividend declared, per share				$ 0.05
Dividends per share declared					$ 0.484375
Subsequent Events \| O 2025 Q1 Dividends \| Series A Preferred Stock
Subsequent Events
Dividends date declared					Feb. 24, 2025
Dividends, date to be paid	Mar. 15, 2025				Mar. 31, 2025
Subsequent Events \| O 2025 Q1 Dividends \| Common Shares
Subsequent Events
Dividends date declared			Mar. 05, 2025
Dividends record date				Mar. 17, 2025
Dividends, date to be paid				Mar. 31, 2025