Notes Receivable, Net

3 Months Ended

Mar. 31, 2024

Note 4 – Notes Receivable, net

The Company’s notes receivable, net consists of investments in loans to buyers of charged-off and nonperforming receivable portfolios. As of March 31, 2024 and December 31, 2023, the Company’s outstanding notes receivables, net of unamortized deferred fees and costs on originated loans, and adjusted for the reserve for credit losses was $17.2 million and $17.5 million, respectively. The activity during the three months ended March 31, 2024 includes the additional investment in notes receivable of approximately $2.3 million, which was offset by principal payments made by borrowers of approximately $2.5 million.

The table below shows the Company’s lending activity as of March 31, 2024 (in thousands):



	March 31, 2024
Notes receivable as of December 31, 2023	$	18,262
Investment in notes receivable		2,256
Transfer of notes		—
Principal repayments		(2,520	)
Notes receivable, as of March 31, 2024		17,998
Deferred financing fees and costs, net		(143	)
Allowance for credit loss		(643	)
Notes receivable, net, March 31, 2024	$	17,212

In accordance with ASC 326, the Company performs a review of notes receivable on a quarterly basis. During the three months ended March 31, 2024, the Company recorded no material adjustments to the provision for credit losses in selling, general and administrative expense on the consolidated statement of income. As of March 31, 2024 and December 31, 2023, the allowance for credit losses was approximately $0.6 million and $0.7 million, respectively.