AFC Gamma, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>AFC Gamma, Inc. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

AFC Gamma, Inc. (AFCG) filed a Annual Report (10-K) with the SEC on March 7, 2024. AFC Gamma, Inc. filed its 2023 Form 10-K on March 7, 2024. The filing covers the fiscal year ending December 31, 2023. The company's business address is 525 Okeechobee Blvd., Suite 1770, West Palm Beach, FL 33401. AFC Gamma, Inc. is classified under Real Estate [6500] in the Standard Industrial Classification. The filing includes data for Senior Loans, Nonperforming Financing Receivables, and various equity accounts for fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking AFC Gamma, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of AFC Gamma's financial performance and operational status for the fiscal year 2023, including details on its loan portfolio and financial health. Investors and stakeholders can use this report to assess the company's financial position, identify potential risks, and understand its strategic direction within the real estate and financing sectors.

Risk Assessment

Risk Level: medium — AFC Gamma, Inc. shows moderate risk based on this filing. The filing is a 10-K, which is a standard annual report, but the specific financial details and risk factors within the report will determine the overall risk level.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K filing to understand AFC Gamma's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-07 — Filing Date (Filed as of date)
• USD — Currency (Standard currency for financial reporting)

Key Players & Entities

• AFC Gamma, Inc. (company) — Filer name
• 0001822523-24-000014 (other) — Accession number
• 20231231 (date) — Conformed period of report
• 20240307 (date) — Filed as of date
• 561.510.2390 (other) — Business phone
• West Palm Beach (location) — Business address city
• FL (location) — Business address state
• 33401 (other) — Business address zip

FAQ

Industry Context

AFC Gamma, Inc. operates within the real estate and financing sectors, likely focusing on providing capital to cannabis-related businesses.

Regulatory Implications

The filing is a standard SEC Form 10-K, subject to regulations under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the company's financial statements for revenue, net income, and debt levels.
2. Examine the risk factors section for potential challenges and uncertainties.
3. Review management's discussion and analysis for insights into strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date AFC Gamma, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial filing data provided for AFC Gamma, Inc.'s 2023 10-K.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share AFCG The Nasdaq Sto
• $1.235 b — which our annual gross revenues exceed $1.235 billion, (ii) the date that we become a "
• $700.0 million — that is held by non-affiliates exceeds $700.0 million as of the last business day of our most
• $1.0 billion — date on which we have issued more than $1.0 billion in non-convertible debt during the prec
• $115 million — pro rata basis. We and SUNS expect that $115 million of assets in the aggregate, in a combin
• $47.8 million — e an equity investment of approximately $47.8 million in August 2020, which included a combin

Filing Documents

• afcg-20231231.htm (10-K) — 2505KB
• afcm-bhetzelemploymentagre.htm (EX-10.8) — 147KB
• ex211listofsubsidiariesoft.htm (EX-21.1) — 1KB
• consentafcg10-k.htm (EX-23.1) — 2KB
• afcg-20231231xex311.htm (EX-31.1) — 11KB
• afcg-20231231xex312.htm (EX-31.2) — 11KB
• afcg-20231231xex321.htm (EX-32.1) — 6KB
• afcg-20231231xex322.htm (EX-32.2) — 6KB
• exhibitb-afcgxformofclawba.htm (EX-97) — 15KB
• afcg-20231231_g1.jpg (GRAPHIC) — 47KB
• afcg-20231231_g2.jpg (GRAPHIC) — 16KB
• 0001822523-24-000014.txt (&nbsp;) — 11872KB
• afcg-20231231.xsd (EX-101.SCH) — 94KB
• afcg-20231231_cal.xml (EX-101.CAL) — 82KB
• afcg-20231231_def.xml (EX-101.DEF) — 394KB
• afcg-20231231_lab.xml (EX-101.LAB) — 926KB
• afcg-20231231_pre.xml (EX-101.PRE) — 664KB
• afcg-20231231_htm.xml (XML) — 1646KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 28 Item 1B. U nresolved Staff Comments 82 Item 1C. C ybersecurity 82 Item 2. P roperties 83 Item 3. L egal Proceedings 83 Item 4. M ine Safety Disclosures 83 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 83 Item 6. R eserved 84 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 85 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 107 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 111 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 111 Item 9A. C ontrols and Procedures 111 Item 9B. O ther Information 112 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 112 Part III Item 10. Directors, Executive Officers and Corporate Governance 112 Item 11.

Executive Compensation

Executive Compensation 112 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 112 Item 13. Certain Relationships and Related Transactions, and Director Independence 113 Item 14. Principal Accounting Fees and Services 113 Part IV Item 15. Exhibits and Financial Statement Schedules 113 Item 16. Form 10-K Summary 115

Signatures

Signatures 111 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Annual Report"), filed by AFC Gamma, Inc. (the "Company," "we," "us," and "our"), and the information incorporated by reference in it, or made in other reports, filings with the SEC, press releases contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we intend such statements to be covered by the safe harbor provisions contained therein. Some of the statements contained in this Annual Report, other than statements of current or historical facts, are forward-looking statements and are based on our current intent, belief, expectations and views of future events. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results or performance, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "can," "continuing," "may," "aim," "intend," "ongoing," "plan," "predict," "potential," "should," "seeks," "likely to" or words or phrases of similar meaning. These statements are only predictions and involve estimates, known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of the factors discussed in Item 1A. Risk Factors and elsewhere in this Annual R eport. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of op

Business

Item 1. Business The following description of the business of AFC Gamma, Inc. should be read in conjunction with the information included elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2023. Unless the context otherwise requires, the terms "we," "us" or "our" refers to AFC Gamma, Inc. Overview AFC Gamma, Inc. is an institutional lender to the commercial real estate sector that was founded in July 2020 by a veteran team of investment professionals. We primarily originate, structure, underwrite, invest in and manage senior secured loans and other types of commercial real estate loans and debt securities, with a specialization in loans to cannabis industry operators in states that have legalized medical and/or adult-use cannabis. We have recently expanded our investment guidelines to deploy capital in attractive lending opportunities secured by commercial real estate. Our expanded investment guidelines now include (i) first and second lien loans secured by mortgages to commercial real estate owners, operators and related businesses that are not related to the cannabis industry, (ii) the ownership of non-cannabis related real property assets, and (iii) mortgage-backed securities, in addition to our prior sole focus on first lien loans secured by mortgages to cannabis operators in states that have legalized medical and/or adult use cannabis. We expect the underwriting and investment process for these investments under our expanded guidelines to be substantially similar to the process we deploy for our loans to cannabis operators. Our objective is to provide attractive risk-adjusted returns over time through cash distributions and capital appreciation primarily by providing loans to real estate developers and state law compliant cannabis companies. The loans we originate are primarily structured as senior loans secured by real estate, equipment, value associated with licenses (where applicable) and/or other assets of the loan parties to

View Full Filing

View this 10-K filing on SEC EDGAR