Financial Data and Key Metrics Changes - For Q1 2025, the company generated distributable earnings of $0.21 per basic weighted average share of common stock, with net interest income of $4,500,000 and GAAP net income of $4,100,000, or $0.18 per share [9][13] - The weighted average portfolio yield to maturity was approximately 18% as of both March 31, 2025, and May 1, 2025 [14] - The CECL reserve was $29,900,000, approximately 9.75% of loans at carrying value, with total unrealized losses of $20,400,000 for loans held at fair value [14] Business Line Data and Key Metrics Changes - The company ended Q1 2025 with $366,300,000 of principal outstanding across 17 loans, which increased to $372,500,000 across 18 loans by May 1, 2025 [13] - The active pipeline as of May 1, 2025, included $287,000,000 of deals, with a focus on sourcing deals from operators with a successful track record [7][14] Market Data and Key Metrics Changes - The cannabis industry continues to experience a supply and demand imbalance for capital, with demand outpacing limited supply due to refinancing activity and increased M&A expected in the second half of the year [6] - Many capital market participants remain on the sidelines due to a lack of clarity around federal reform, impacting the availability of capital in the industry [6] Company Strategy and Development Direction - The company is focused on protecting principal in its investments and is selective in its originations, prioritizing high-quality borrowers and proven operators [7][19] - The company aims to unlock value from underperforming loans while evaluating new lending opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the volatility in the cannabis market and uncertainty surrounding federal progress will influence their opportunistic approach to originations [19] - The board is expected to declare dividends on or about June 15, with a policy of distributing 85% to 100% of earnings over the year [20] Other Important Information - The company is engaged in legal proceedings related to a subsidiary, Justice Grown, and is focused on protecting shareholder capital amid ongoing litigation [12][30] - The company renewed its senior secured credit facility with a lead commitment from an FDIC insured bank, with a maturity date of April 29, 2028 [14] Q&A Session Summary Question: Can you unpack the decline in interest income from Q4 to Q1? - The decline was primarily due to lower income from a subsidiary and the absence of dividends from the TRS in Q1 [16][17] Question: How should we think about distributable earnings progression for the rest of the year? - Management indicated that they will be opportunistic in originations and will not set targets due to market volatility [19][20] Question: What can be assumed regarding inflows from the proceeds of the Georgia asset sale? - Management stated that they cannot provide guidance on timing or amounts due to the receiver's control over the process [21][23] Question: Is there an opportunity for private lenders in Pennsylvania's potential state-run framework? - Management noted that the Senate has rejected the state-run model, making it unlikely to be an opportunity for the company [34][35] Question: Are borrowers feeling the impact of tariffs on their costs? - Management indicated that the cannabis industry is likely to see minimal impact from tariffs, as many materials are sourced domestically [40][42]